Risks Of Investment
April 21, 2009
Do you have brave to take the risk in investing? This question may often if you are make decision about investment. Say you have $1000, and you are confused whether to put it in a bank or elsewhere. If in the bank, you may feel secure. But sometimes, offer investment in other places are often very large and seduce, that this sometimes frightening you.
In investment, there are certain risks. Well, there are usually only three investment risk that scared by most of people when they invest:1. Decrease of investment value
Risk that become scared by most of the people in investing is “What I will lose my money?” Most people may say “no” when asked like that. which is people who want lose their money? However, the problem, that there are certain risks in any investment. Only difference is in size. There are investment products that have big risk,middle, and small risk.once again,that scared by most of people is: what I will lose my money?
Okay, now if you invest, how much value decrease you are willing to responsibility when you lose in investment? 10 percent? 30 percent? 50 percent? Or 100 percent? Regardless of loss you are willing to responsibility, remember, it is part of investing. Do not ever expect you will continue to speculate. The loss, it must be experienced occasionally. because experience is the best teacher, isn’t?
2. The difficulty to Sale Investment Products
Second risk that most scared by some people to invest is their investment product which they buy is easy for re-sell. Some people may be happy to invest in gold because gold is considered easy for re-sell.
Other examples of investment product that is not always easy to re-sell is goods collection. Goods Collection generally are not always easy because the re-sell market of goods buyer is very specific. Painting, for example. Because of a specific market, not always easy to sell the painting. But, once sold, the price could be very high and gives the rather fortunately for those who sell it.
So, before you decide to invest, consider first how easy it is the product of your investment can be sold again. Do not invest until you can not sell them, because the goods sold is difficult.
3. Investment Provided Results isn’t as large as the Increase of Goods and Services prices
Imagine if you invested in deposit that give 10% interest rate per year, while price of goods and services are increase 15% in same year. This often happens, it is not too high of goods and services increase, but because of the selected product itself will not necessarily appropriate.
What should you do to address this risk? Do not close your self about information. Learn investment products that you may not to know, and then try to go there considering all the consequences. The long run, you can certainly overcome the high price increase of goods and services to invest in products that are potentially to be able to give results higher than the price increase of goods.
So, let’s try and good luck in investing.
Written by fitri· Filed Under financing , Tags:, investment, risk
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