Risk: the way to do it.. the road to accumulating wealth
What is a risk?
According to the English application dictionary “a risk is the likelihood of a negative outcome”. Cambridge advanced learners dictionary defines a risk as the possibility of bad things happening. Investopedia defines risk as the chance that an outcome or investment’s actual profit will differ from an expected outcome or return. . Let’s keep things simple risk is what is at stake when things go wrong. For instance if you have hundred dollar and you buy an asset with twenty dollar hoping to make profit. There is a possibility that the twenty dollar would yield nothing. Your risk therefore is twenty dollars.
Taking risk can make or mar your business or your life. All businesses have the risk they comes with. You don’t want to take a risk that would move you from being a millionaire to being an ordinary man struggling to survive.
Is there really anything as an ideal risk?
For starters, you must risk to make it in the business world. If you don’t like to take risk then just go back to bed because even your job is also a risk. For me, I feel there is no actual number or percent when it comes to taking risk. I personally feel it’s about your personality and your threshold. I will like to define an ideal risk as a risk that allows you to sleep at night. Once you really don’t care about what happens with the outcome , you can comfortably say you have taken a risk that wont change your status from grace to grass. In essence, whatever you risk should not make you poor as fast as possible. Some school of thought believe that 2-3% of your capital is ideal risk. I agree with this school of thought too. If you can apply this to your business and investments, you would make the best out of it. Risking this way gives you opportunities to try more business idea. Also, risking this way comes with less anxiety. Hence, the need for risk management.
What is risk management?
What are the ways to manage risk?
All pictures are gotten from Pixabay
Thank you for reading
Everything in this life implies a risk and more in business, but as they say out there who does not risk does not win. We must always take risks in this life, since that risk can imply a change of 180 degrees, either for good or for bad, but it is something that we will not know until we do it, otherwise we will be left with the intrigue of "WHAT HAPPENED?
Wonderful point right there
Even if the road that leads to wealth is one filled with risk, it is still very important to watch the type of risk we take since some risks are extremely deadly.
I sincerely do not think that ponzi schemes are worth the investment, I mean what id the need?
We know they are certainly going to crash one way or the other so what is the need investing in a scam project?
ponzi schemes are not worth it.