Risks vs Interest in Financial Investments

When comes to the term "Investment", most of the people have the same feeling - "It is RISKY"! Well, it might be true and at least it apply to some of them. From my personal perspective, I split them into 3 groups:

• Group A: Those are fresh, no experience, not being educated in investment stuff
• Group B: Those are half financial educated/experience, trying an error and in the progress of trying to taste the "feeling of winning in the market"
• Group C: Those are "over experience" as they were burnt and lost their hard earn money in the market during economy crisis

I personally feel "Risk" is everywhere, life is a risk. "Risk" can be defined as hazard; a source of danger; a possibility of incurring loss or misfortune; For ex: "drinking alcohol is a health hazard", but still so many of them drinking. People see risk is partly due to the lack of experience and knowledge, we see risk in driving when we do not know driving, we see risk in getting sack from employment when we can not perform, we see risk in passing exam when we are not competent/confident. Thus, people see risk in investment is because they have no idea about the products well.

Since everywhere in our life is full of Risk, then I do not feel this is the main factor stopping you from investment, as please remember that "RISK IS MANAGABLE"! The question here should be "Are you interested in investment"? If you are highly motivated and interested in investment, you will automatically see the opportunity to overcome the resistances and managing the risk within self capability level. In the other way, we manage risk to minimum, subsequently bringing up the return probability. Our task and objective is very clear: "Min. Risk vs Max. Return"! Of course that is just an ideal case, it may vary when comes to practical.

There are many ways to deal with risk and manage risk, each risk that you have identified. Some of the suggestions are:

• Accept it
• Transfer it
• Reduce it
• Eliminate it
  

For example, you may decide to accept a risk because the cost of eliminating it completely is too high. You might decide to transfer the risk, which is typically done with insurance. Or you may be able to reduce the risk by introducing new safety measures or eliminate it completely by changing the way you produce your product.

Finally, the conclusion is it is totally up to individual's interest and willingness to taking the risk in financial investment. If the answer is yes, then just focus on improving the knowledges and experiences, equipped yourself well to prosper later. There is nothing comes free in the world, but I strongly believe "Hard Work Pays"!