Risk is More than a Four Letter Word

Posted by Priya Sharma
4
Sep 25, 2015
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Many people, when they hear about 'risk', think automatically about the chance of being defrauded or not getting all of their money back. This 'capital' risk is important, but it isn't the only type.


Risk is defined as the possibility of outcome different than expected and the basis of risk is uncertainty.Risk in the world of investments and finance is more succinct.  Risk is the uncertainty of outcome, however risk can be quantified whereas uncertainty cannot.  When you make an investment, it can be difficult to say with any certainty what you'll get back when you finally cash it in. Share prices fluctuate, interest rates vary and inflation is a risk too but you  Don't Afraid of taking a risk in Investing into equities because


Risk is a gift of life, there is no point in life where you are not taking RISK.


When you are breathing you are taking a risk of dying,


When you are sleeping you are taking a risk not waking up next day.


From childhood when you started standing,walking, running you had taken a risk of falling.


When you went to school you had taken a risk of not getting what is been taught .


when you face exam you had taken a risk of failing or getting marks less than expected.


When you faced interview you had taken a risk of rejection.


When you stated a business then you had taken a risk of not being successful.


When you got married, again ......................

and so, on and on.........................................


but Risk, a friend, had gifted you many things in life, Risk only made you what you are today.


As you had taken a risk you got many rewards.


Risk introduced you many of your qualities which were unknown to you.


Risk made you to think in innovative way, it made you more creative.


Risk ask you to raise your bar of success, kept you on toes,


Risk is the one who drives improvement and development in you.


the same thing is applicable in Investments that carry more risk usually (but not always) offer higher returns, or I should say expected returns. As a rule, the correlation between risk and reward in the market is almost perfectly positive.


Their are just some of the risks that are associated with an investment in the stock market. Individual shares will have their own individual risks. It is critical that investors understand the effect that these risks can have on their investments. Therefore, the assessment of risk is an important element of successful investing.


Do you know what is the biggest risk in life ? it is "not taking risk".


Standing where you are, is the fastest way to keep yourself behind of world.


Take RISK and say yes to Improvement, development, growth, innovation,creativity, opportunities.


because RISK is LIFE.

so moral of story is taking risk on invest in equities. equity market are not for making quick money rather it's all about patience.so I will suggest you before investing you should planed strategy and update yourself about the market sentiment.

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