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Sentiment
Understand the Risk before the Profit
Most humans are super focused on how much they can make, how fast it will come, and how they intend to spend it. In some cases, that is, if you are like me. Sometimes I may even fantasize about the house I intend to buy with the profits if that profit comes in. While envisioning all these is fine, the problem comes in when you overempahsis on the profit and overlook the risk involved. No matter what it may be, there is surely risk involved; all that matters is how much the risk is.
It does not matter the financial instrument involved, there is some kind of risk involved, and understanding the risk is as important as knowing what you ar putting your money into. This will allow you to know how much you want to get involved or what you intend to put up. The best financial tip that can work for anybody is putting up what you are risking, which is the most important thing of all to understand when investing.
Then there is the human emotion as a factor that can be as deadly as not understanding the risk involved. It is hard to say that there is a simple guide to solving every financial constraint you will encounter in your life, rather than a single book that tells you all. The best you can get from these books is guides, and in the end, you have to do your research on what works for you. I know there are books out there about finance, but only a few tell the truth that the idea of money and the concept around it all boils down to a product of individualism. It is all about the human being who is involved, and that is just it for me. You still have to understand your lifestyle and what you are costing, which is what determines how much you can invest and spend.
Do not get carried away by the success of some people and the flaunting of wealth by many on social media. The blueprint does not work for all, and it does not mean that if this person made it by doing this and that, you can also do this and that. Look at the unfair advantage that the person has and the underlying factors that contributed to their success. You will be shocked that the success of many of these people who flaunt wealth online was paved for them, but they do not talk much about that, so it seems that they are self-made.
The ones who are self-made are not out there flaunting the wealth to get you to buy a course or join their team of wealth builders. They are busy making innovations and investing their wealth silently that are not spoken about unless you do your research yourself. Ask yourself why is it Elon Musk is busying building a vertically integrated business for his company, where one business can serve the purpose of another. Instead of outsourcing, he wants to control the entire chain of the business, until it gets to the final consumer who pays. Look at these things and do not get carried away into thinking it is by joining some prop firm, trading team, or signals. Go out there and do your research; the wealth you seek is in the ideas you are afraid to explore simply because you are not ready.
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13 commentsYou know, sometimes we ignore what it might take and focuses on what it can bring.
History repeat itself daily but we don't usually learn from it.
To take risks is good infact if you don't risk it, you won't make it but then, you can risks it and boom otilo(is gone).
Knowledge, understanding and wisdom are the basic needed to take any risk.
You have to ask questions, understand answers and finally, apply the knowledge and that's wisdom.
Amazing post! You see… for some reasons many people get it wrong they always believe in working for a result or profit without properly understanding the system they’re earning from or even building one. What’s important is not the dollar we make everyday but what matters more is building a super tower strong system that will keep giving you a return even if you close your eyes or just do less
Many people of today with high level of self made success or wealth don’t really have time to flaunt online as they are recovering from the mental and emotional stress it took them to get to where they are, in most cases the ones flaunting the wealth are the ones that already have a paved way! So domt kill yourself trying to be like what we see online but instead build an earning system thats strong enough for you
A lot of people are quite guilty of this. All for the profit but nothing for the risk that tags along with it.
I do agree in the concept of individuality and the role it plays in the narrative. The same pattern which skyrocketed Mr A from grass to grace might just turn out otherwise for Mr B.
that's one thing they won't tell you, there are secrets to building true wealth most of which we don't know, most time we neglect the risk only aspiring for the profit, meanwhile the risk factor is equally important as the profit we seek.....
thanks for the enlightenment
balance between risk and profit is key
It is good to read books but just as said, it is only a guideline to leverage. Many of us careless about weighing risk and we enter into a financial trap. Thanks or the article friend.
You’re welcome. Even me I’m guilty but sometime when I write, I learn from it too; a subtle reminder of how to become.
Not only you friend, this is why I love writing, it opens up my flaws
It's funny, every so often I get a random business idea and decide to dig deeper into it, most tend to lead you to a YouTube video or some blog which simply says the best way to make it 'big' is to sell yourself to your community. Basically, every job is just a way into being a social media influencer, as that's where they earn most of their money! There must be another way! Or maybe I should just stick to #slothlysavers and slowly grow my worth on Hive! One, slothly, step at a time!
This is so true. A lot of people don't want to take risk. They want something that will yield them profit in a blink of an eye.
They don't want to build or discover themselves. A wise man will always say "Nothing comes easy." You either work, strategies, make your research to archive your finance or seat down lazying around expecting some easy scheme to make money.
And some people would rather imitate others because they can’t plan or strategize on their own.
You are very right. I think doing away with our emotions means a lot. I remember when I attempted forex trading, emotions ruined the attempt and I lost a lot.
@samostically, I'm refunding 3.671 HIVE and 0.000 HBD, because there are no comments to reward.