Whenever I took too much risk in investing, I failed as a result. I read successful people's books and they encourage you to take risks in life to be successful, however every time I took a risk it didn't work out and now I owe a lot of money to the bank and different people. What do you think is the reason? Is it wise to take risks in investing?
Every time I took a risk I failed in investing, why?
- Thread starter Bango
- Start date
There are many types of investments in the market. However one should make a proper research and due diligence on whatever investment platform to undertake. Failure to do so can result into constantly investment losses.
I don't think it is wise to take risks in investing. Investment generally comes with its own risk, And for me I strongly believe that as an Investor you should only invest what you can afford to lose. Do not invest more than that. And also ensure you conduct adequate research before investing.
Unfortunately you did not mention the type of investment whether HYIP or stocks, crypto etc. Each type of investment instrument has a different level of risk, in crypto or stocks you will be safer choosing bluechip stocks, compared to buying IPOs or speculating stocks.
- Thread starter
- #6
No i never invest in HYIP. maybe in the past with $20 or something but not today. i invested in crypto and etc
Well, I read the stories of successful people who did great things by borrowing, or even companies, banks, etc. take loans. That's why I thought it was a good idea
All investment involves risks. Before making any investment, you need to do proper research and understand the market trend. Seek expert advice if you are a newbie. Invest what you can afford. It's very risky if you borrow money to make investment.
In the world of trading, professional traders often make loans, such as on margin trading or shorting, but not for long-term investments. So before investing you have to determine your profile so you can choose the right investment instrument. After that, do research and analysis, determine investment goals and buy investment instruments with idle money.
I have learnt to actually play it slow and steady too. I have lost more than I've gained trying to make money online, so I now find something that I know works, and I focus on it while increasing the capital I put into it.
Maybe because what you lack is to measure the risk well or take more risk than you should, also the management of capital in all this is key to be able to manage risk correctly, many times the timing is also important, that is, when you execute that investment.
Yes it is wise to take risk and good to take reasonable risks. It's not a good idea to make a risk that is too high you might end up losing your money. And before going into any investment make sure you do your research well
- Thread starter
- #12
you're right. I think I should read a book about risk management. If you have any suggestions, please let me know. I am interested to read and learn more about economics. Maybe my lack of knowledge is the problem
Well, the advice I can give you is that you do not invest in schemes that seem too nice to be true, or in returns that are unreal, for example double your money in a few days, or a few months, that does not happen, try to invest in real assets and that tend to revalue over time organically, for that you need to do your job and investigate the market, There are many books on investing that you could keep an eye on, such as The Smart Investor, the little book to invest with common sense among others, you must also analyze yourself and think about what you want to achieve and with that choose a risk that is comfortable for you and you know how to cope, also try to build a long-term mentality instead of the most common one that is the short-termist and that so much damage usually does to the investor.
In this life, you should provide work and then get paid to do this work because if this is not done that means it is a scam program so no one for example gets 10 $ and pay back 20 $ even after 1 month.
Excellent comments here from various people, yes it is important to classify the type of investment you wish to undertake. Take low-risk investments with a maximum of 12 per cent profit per month as opposed to high yield income projects. It is also advisable to not borrow money to start a business but rather only borrow to improve the business. You need to do due diligence research before executing something and develop skills that will help think outside the box and be innovative enough to evolve when their shocks both internal or external.
Maybe your knowledge and experience in the investment you are participating in is still lacking. So you cannot maximize the potential profit from the investment that you participate in. Do not enter into an investment that you do not understand, because it is too risky.
You failed because you started investing without knowing everything about the asset/equity that you invested, you failed because you invested without understanding the market sentiments. YOu need to do a a lot of research before investing.
I think this is due to the fact that you perhaps made the wrong kind of decisions. This is one of the main reasons why so many people fail when it comes to conducting business or making an investment.