When does risk become profitable?
"Our whole life is a game," a clever man once said, and he was quite right. All of life's actions are based, in one way or another, on the rigid rules that make us civilized human beings. And like any game, there are losers, winners, and those who are still playing, who have a great desire for winning status. Unfortunately, not everyone succeeds, because every step we take in the battle for leadership involves a certain amount of risk.
Surely each of you in your life has heard stories of ridiculous cases leading to unfortunate consequences. How, for example, the survivor of a terrible accident, the driver who flew out the windshield, drowned in a puddle, in which he landed already unconscious. Of course, this story is instructive in that one should drive at the correct speed on the wet road and always wear a seat belt, but the most important thing to focus on in this article is the fact that Every event in our lives involves risk. If you think about it, even when we do our morning exercise, we find ourselves face to face with the likelihood of breaking our neck or spine. No wonder there are so few winners in the game called "life.
For life, all players are equal, whether they are humans or insects, plants or animals. In scientific biology circles, this is called "Darwin's Theory of Evolution. In broader terms, any firm, company, plant or corporation falls under this description - in a crisis, the strongest or the luckiest survive. The same risk is borne by your money.
When you bring money to the bank, you put it at risk of being devalued by InflationNot to mention the fact that the problems of the financial institution itself can lead to the loss of the deposit. Your savings may also be at risk at home - again inflationand theft and other things. Keeping money "in the basket" makes no sense whatsoever. History teaches us that choices must always be made. Will it always be the right one?
Buying a house? It could burn down. If you invest in jewelry, you run the risk of encountering burglars. Investing in your own business idea? It can be unsustainable and not bring the desired results. As you can see, whatever choice we make, it always carries a risk.
Assessment of investment risk
Nevertheless, it is not for nothing that there is an old saying "Out of two evils choose the lesser one", so our task is always to assess our risks and make a choice in the direction of the most acceptable option. I should note that people do not always choose the paths that involve minimal losses. Sometimes conditions push us to make significant concessions in order to get more benefits. However, the presence of increased risk always implies that one assumes more responsibility, so it is necessary to think everything over very carefully before making a move.
These tips are as applicable to our ordinary lives and to building our own business as they are to a trader. Every trade you make on the exchangewill have a better chance of winning if it is thought out in detail: when to enterWhen to exit, why you have decided to open an order now, if there are no events in the near future that can turn the market against you, and most importantly, how confident you are in your actions. Of course, you should always doubt, there are no valid strategies for 100%, but if you feel a strong lack of confidence in such a position, try to think why?
You may be spending too much Deposits for a deal with a high risk - open for half of the intended amount; you fear a reversal because of the news that is coming out in an hour - put stop ordersYou missed the beginning of the movement - perhaps it is better to forget about this order than to get nervous about a couple of dozens of points of profit. Listen to your emotions, even though they are not always rational. In most cases, the nature of human fear is necessary for our survival - don't follow it blindly, try to understand it.
But if you do decide to take the risk, be prepared to pay for your decision.