“Do the thing you fear most and the death of fear is certain. – Mark Twain”
Free Markets are full of risk. Free Markets are full of individuals who love taking the risk. Whether it be in investing or inventing a whole new product or service, freedom to take risk is one of the cornerstones of free market economics. Risk is taken to reap the reward. We all take risks; when you get in your car, when you walk across the street, when you try a new food. Life is full of risk!
Risk includes losing some, or all of your initial investment, and time. Risk can have rewards far beyond the initial reward spectrum. There are safe risks, and almost irrational risks. There are stages of risk in business and investments. We all have what would be considered a risk tolerance, and it’s important to understand your own tolerance when it comes to taking risks. Would you play it safe? Or dive into the unknown?
Balance, and diversification of risks can be the most beneficial strategy to use in our own investments, but it depends on you. Risk is a very abstract term, and it is very subjective by nature. We all have our own gut feelings, or instincts to follow; but it is important to do research, and gather as much information as possible before committing to anything, or is it? Some of the most successful investors have gained their success through one risky asset, and now they are considered an expert in their field. Life is a risk takers paradise the only question now is; How risky will you be?
