Is It Worth The Risk To Invest?

Do you find the thought of investing money to be a bit daunting? Well you’re not alone. Many of the people that I talk to about investing have a similar outlook. Everyone knows that you can make money by investing wisely, but many people are too worried about losing it all, or being worse off because of a poor investment decision.

I decided a long time ago that I didn’t want to spend the rest of my life working for someone else, so I made a conscious effort to learn as much as I could about money, and to work out the best way to realise my dreams of retiring early. One of those ways was to learn about the world of investing. I had no prior exposure or understanding about investing, I just knew that other people were making money investing in things like stocks and I wanted a piece of the action.

When I first started out, things went well, probably a little too well if I’m going to be honest. I felt like no matter what stock I picked, I just couldn’t lose money. I think I ended up picking about 5 in a row where I made a good 10-15% on each trade – I was ready to become a stockbroker after that.

As it turns out, I had started investing during what is known as a “bull market” and that pretty much means that the entire market is going up, so there was a good chance that even if the stock I was on was a bit of a dud, it was still going to go up simply because everything else was going up – it doesn’t make a lot of sense really, but if I’ve learned one thing, it’s that psychology is a massive part of the stock market.

The other major thing that I’ve learned is that investing comes with a level of risk associated with it. Sometimes the risk pays off, sometimes it doesn’t. I learned about risk the hard way… After doing so well on some larger stocks, I decided to try the more risky side of the market. I decided that if I was really serious about making good money in a hurry, I needed to make bigger returns than a few percent each trade.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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