Just as the saying goes, we live in a risky world. Almost everything we do involves some degree of risk. Generally, to invest is to risk… since one is not certain about the outcome of the investment.
According to Wikipedia, investment or investing is a term with a few closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is generally bought, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it.
Today, many do not like to hear the word investment just as it involves hazards. Allegedly, to invest is to chance ; but we shouldn’t thanks to the risk avoid investing.
It will be much better for one to learn how to manage risks associated with investment rather than avoiding investing totally. A good investor should learn how to manage the various risks associated with every investment. It will not be wise for one to avoid investing merely because of the risks associated with investment.
A potential investor should also know that the risks associated with every investment varies. For instance the risk associated with Stock Investment or Stock Trading is not the same with that associated with forex trading. Likewise, the risk associated with real estate investment also defers from the risk associated with transport business. Every business we do, no matter how small has its own risk.
What is the major fear an investor faces? The major fright investors face is the fear of losing money. Each time you give investment a second thought, the next thing that may come to your mind is that you may be losing your money.
Also, if the assets you invest in are held in another currency there’s a risk that currency movements alone may affect the value. This is named currency risk. To venture is to chance and it’s really complicated for one to do without a degree of risk in life, since each thing in life is all about risk… Even life its self is sort of terribly dodgy too.
Finally, to invest is to risk, look for a good financial adviser before embarking on any investment, or read more on how to avoid some mistakes in the investments through the author’s links below:-