You Teck's Blog

What’s Risky Investment?

Posted by You Teck - 14/07/08 at 11:07:54 pm

Investment is one of the topic that I discuss with my buddy frequently and most often than not, it’s about securities. It’s interesting though to note that when I mention this topic to my other social circles, their responses are mostly “But that’s very risky!”

I must first declare that I’m not an investment guru (yet) but one thing I know for sure is that whatever that you want to do that requires first-hand experience which you do not have is risky.

Take the example of a very experienced pilot giving you a brief talk on the mechanics of flying and then expects you to fly the plane after that. Is that risky? You bet! Consider this analogy in securities investment, do you think it is risky to trade in something that you have no clear first hand experience and solid knowledge on?

The point I want to emphasize on is that if you do not have a very clear knowledge of the task you are undertaking then there will definitely be in risk in it. Merely hearing from someone that these stocks pick are good is never enough because at the end of the day it’s your own money that you are putting in.

Getting precise knowledge before making your investments choices and then using it to gain first-hand experience will definitely decrease your change suffering a major financial catastrophe. To end this post, here’s a very useful phase I’ve come across from the book The Entrepreneur Investor, “Eyes believe what they see; Ears believe others”.

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