Let’s be honest. Are you a risk-taker? Not everyone is. Some of us are natural-born risk-takers. These are usually rambunctious children who grow up to be free-spirited adults. These people live a risky lifestyle at all times so more isn’t a deterrent. Most of us are risk-averse. These are the “by the book” crowd. They go to school, get a job, and stay until retirement. The rest of us are forced into becoming risk-takers. This bunch is a mixed crowd of discontent “by the book” people and people who failed at the “by the book” life. That is the list. The naturals, the cautious, and the forced. Where do you fit?
Whether you’re on one end or the other, being a risk-taker is dangerous. You have to have some skill. Lack of know-how is why only a small amount of risk-takers are successful. If you are blindly going into risky situations, you are going to pay massive costs. These costs can be monetary. Starting to invest in the stock or crypto market is a great example. Yes, we can make millions within a year if you are in the right trade. We can also, and most likely, take an immense loss. These facts are not an attempt to sway us away from investing or put a negative light on it. It’s the truth. The truth is most of us go into these new endeavors knowing nothing. We will find ourselves in situations and have no familiarity. We could luck out and make the correct decision, but you know… life. There is a thing called paper trading. This concept in most trading apps allows you to actively make trades (buys and sells) without using real money. This strategy enables you to learn and make mistakes with no consequence. Yes, you also make no money if your chosen stock or crypto value raises while you’re practicing. Consider it a cost of learning. Would you rather the cost be from unrealized gains or actual losses? Everyone is different. What level of risk can you live with?
These costs can be years of progress. Let’s say you are a discontent “by the book-er.” You’ve done everything you were supposed to do. You have your house, your car, your spouse, and a child or two. Leaving that plush position because you want more will feel like both a relief and a setback. Relief is the opportunity to address what has been eating at you for years. The setback of the move is discovering that every dollar coming in will be in direct correlation with your know-how and effort. This move results in a huge change. The two checks a month you are used to receiving regardless of production, gone. Two paydays a month can turn to two paydays a season. What level of risk makes you comfortable?
These costs can be overall health. The position we are in can be mentally making us sick, causing us to ignore the level of risk we are about to take. In the beginning, we’ll be trading pneumonia for the flu. Soon, we’ll trade the flu for a common cold, followed by a common cold for being tired. Better is better, correct? We have to decide to do what is best for us. The majority of times in life, we don’t get to trade bad for good. Keep this in mind. Simply, leaving a place or situation making you feel bad physically or mentally is both a risk and a win. Enjoy that win and edge closer to the next one. Remember, the bigger the change you reach for the larger the risk. 2 out of 10 is better than 1 out of 10. Reaching for that five from the 1 can cause you to miss and potentially fall to 0. What level of risk can you live with?
In closing, are you a risk-taker? I’m sure you know the answer by now. If you are, please understand the level of risk before jumping in. We who are forced may have no choice in taking risks, but we can choose how much of risk. Don’t be afraid of slow and steady or fast and furious. Assess both, you will find what makes you comfortable. As you gather more experience, you will adjust your level accordingly. Keep your goal in mind and continue to move forward.
Food for thought…You do the Dishes.
