dameonStar
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Are You An Investor, A Gambler Or A Speculator?
It is everybody’s goal to make an investment, to put money into something in the hope that it shall be profitable in the future.
What is investing? Investment has different meanings, In Financial terms, investment is putting money into something with the expectation of gain that upon thorough analysis has a high degree of security for the principal amount, as well as security of return, within an expected period of time. In contrast putting money into something with an expectation of gain without thorough analysis, security of principal, and security of return is gambling.
Putting money into something with an expectation of gain with thorough analysis, without security of principal, and without security of return is speculation.
The million dollar question is, have you been investing, gambling or speculating. Probably you don’t know the answer to that question yet. Most of the successful investors give the answer to this without blinking. Why? They know where they are putting their money, they care to do research and at least understand the risks involved. Most of us put money because we see an opportunity; that’s not enough, in fact it’s risky. Literally throwing money expecting it to bounce back. Lady luck has her bad days too.
They first step after being attracted by the opportunity is to identify and appreciate the risk involved. Look at what you are likely to lose when the spin follows unknown commands.
Are the risks involved too big for you to accommodate?
Is the return good enough to compensate for the amount of risk involved?
These questions answered, then go to the scarcity of the investment you are making. Scarcity can be caused by nature, skill or amount of capital involved. If you invest on something that every Tom **** and Harry can afford, then your chances are very slim. This is because you are forced to share the returns available with everybody else while the returns cannot stretch beyond their optimum level.
How many times have you looked through the doors of a gambling den and felt pity for the gamblers inside? Sad news is all the money you put in any project without analysis, security for your principal, and security of return puts you in the same boat with the gamblers. Be it a shop, piece of land, a degree, an asset …relationship, name them! The silver lining is that even gamblers take home some money, windfalls at times. But do you really want to be a gambler?
Most young people gamble in the name of investing. They want to take risks and yet they don’t know the amount of risk available. Over 50% of all small businesses fail within the first five years. Why do you think this is so?
The good news for young people is that you have time to learn form your mistakes and recover.
If you are a beginner, you will largely increase your chances on investing and avoiding all else until you have money to throw away; however it’s until you take chances (throw money) that your chances of making it big triple. Confusing right? We shall clear up the mist in the coming updates.you wouldn’t be surprise
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It is everybody’s goal to make an investment, to put money into something in the hope that it shall be profitable in the future.
What is investing? Investment has different meanings, In Financial terms, investment is putting money into something with the expectation of gain that upon thorough analysis has a high degree of security for the principal amount, as well as security of return, within an expected period of time. In contrast putting money into something with an expectation of gain without thorough analysis, security of principal, and security of return is gambling.
Putting money into something with an expectation of gain with thorough analysis, without security of principal, and without security of return is speculation.
The million dollar question is, have you been investing, gambling or speculating. Probably you don’t know the answer to that question yet. Most of the successful investors give the answer to this without blinking. Why? They know where they are putting their money, they care to do research and at least understand the risks involved. Most of us put money because we see an opportunity; that’s not enough, in fact it’s risky. Literally throwing money expecting it to bounce back. Lady luck has her bad days too.
They first step after being attracted by the opportunity is to identify and appreciate the risk involved. Look at what you are likely to lose when the spin follows unknown commands.
Are the risks involved too big for you to accommodate?
Is the return good enough to compensate for the amount of risk involved?
These questions answered, then go to the scarcity of the investment you are making. Scarcity can be caused by nature, skill or amount of capital involved. If you invest on something that every Tom **** and Harry can afford, then your chances are very slim. This is because you are forced to share the returns available with everybody else while the returns cannot stretch beyond their optimum level.
How many times have you looked through the doors of a gambling den and felt pity for the gamblers inside? Sad news is all the money you put in any project without analysis, security for your principal, and security of return puts you in the same boat with the gamblers. Be it a shop, piece of land, a degree, an asset …relationship, name them! The silver lining is that even gamblers take home some money, windfalls at times. But do you really want to be a gambler?
Most young people gamble in the name of investing. They want to take risks and yet they don’t know the amount of risk available. Over 50% of all small businesses fail within the first five years. Why do you think this is so?
The good news for young people is that you have time to learn form your mistakes and recover.
If you are a beginner, you will largely increase your chances on investing and avoiding all else until you have money to throw away; however it’s until you take chances (throw money) that your chances of making it big triple. Confusing right? We shall clear up the mist in the coming updates.you wouldn’t be surprise
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