Sunday, October 31, 2010

WHAT LIES AHEAD IS ALWAYS A MYSTERY...

Humans are always in puzzle, thinking about the possibilities and the potential outcomes on everything that we commit to do. The ratio between risk versus reward is always a big question before we take any step forward.

If we were too much on risk aversion, chances are we may not make any progress at all by being too afraid to take that first step all the time. But at the same time if our risk appetite is too big, chances are we may unnecessarily open ourselves to potential surprise that could bring disaster to our personal well being.

So which way to choose? Stay aside and play safe all the time? or risk it all in a single decision?

Though playing safe may sound the most conservative option that would protect us in the long run, the fact is you can never run away from risk. In anything that we do, there's always risk involved.

Hence, whenever this question pops up, the answer will always go back to risk management. That is why when someone approach you saying that this or that investment is risk-free, he is definitley lying.

One way or another, there is always risk for sure.

The only important matter that you must consider is...

IF ANYTHING GOES WRONG, HOW BAD WILL IT BE TO ME...???

Hence, regardless of how small or how big your next investment is going to be, always ask this question to yourself... repeatedly.

I had done a few terrible mistakes in the past by not installing this question in my subconscious mind. Hence, when things went terribly wrong, I was always in trouble that requires serious escape plan.

As per written on the topic above, the reason to this is always due to the fact that we humans are always wondering what lies ahead of us in the next 1 hour, 1 day, 1 week, 1 month or even 1 year from now. Something good or bad? We all don't know for sure. We can be optimist and positive, but sometimes being optimist alone is not enough in ensuring the success of our efforts.

Though the keen motivators can always tell you that we all can shape our future and destiny through proper planning and hard works, there are just things that you have to leave to fate and chances especially those that are beyond your control.

So the point is... do what you what you want to do but always focus on risk management rather than thinking too much on the rewards. Dreaming is good for sure but most of the time, you have to wake up from your dreams and face the realities.


Have A Nice Day.