Wednesday, June 2, 2010

Investing is RISKY

We would often hear this from people that are afraid or haven’t tried investing. Why do they say it is risky? If it is risky, why are there many investors who gets wealthy? They say it out of fear. FEAR OF LOSING MONEY. For now let’s just call them Courage. Now, these cowards isolate themselves from good investment vehicles that would propel them to the wealthy class. Instead, they settle for secured but very low return investments like time deposit.

“Low risk, low return. High risk, high returns.” This has always been the statement when it comes to investing. And this is how investing will always be. Then why is investing risky for Courage? It’s simply because they know nothing about that vehicle. Not only that, they refuse to know and are too lazy to study opportunities. Worst of all, they influence other people not to invest. They not only take the opportunity out of their hands but also from other people who could benefit from it.

When you do not know about an investment vehicle, you become uncomfortable, thus, believing it is risky. Investments aren’t for the faint hearted. Courage simply hates being uncomfortable. You have to be tough mentally, emotionally and financially because investing is a money game. You have to be ready to lose some money because it is part of investing. With every failure, you gain knowledge and experience, thus making you tougher in investing.

Henry Sy

So what do you have to do when you encounter risks? One word:STUDY! That is the only secret to lower the risk. Think of it this way, Henry Sy is already a master when it comes to building malls. But before he went into real estate developing, it was risky for him. How did it become less risky? By studying it!

Another example? How about Warren Buffet? Do you think he’s a genius when it comes to picking stocks and buying companies since birth? NO! He studied what he needs to know about stocks and companies, and then took ACTION. Though he did not earn instantly, his failures lead him to become more knowledgeable about stocks. You see, he took the risk of investing in stocks at a very early age.

Through mistakes they learned then eventually mastered it. But it starts with studying what you don’t know. Fail to succeed. For it is the best way to learn. -DE

Warren Buffet

“Risk comes from not knowing what you're doing.” – Warren Buffet

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