Topic: Coping with Risk. - page 2. (Read 1350 times)

Naturally, the trend of business in this era is online. This is because you can reach a larger number of people from the comfort of your home. It is easy, faster, and more convenient for business owners to manage their businesses online. However, there is no business that doesn't have its own disadvantages. I don't like the fact that people have to choose between online and offline business, which is better. Every business owner has his own business pattern and strategy; he may choose to do his business online or offline. And he/she is aware of the risk involved in choosing any. But it doesn't stop them.

I believe every business owner or someone who wants to start a business should choose his own niche and not jump into business because people are flooding into those patterns. It will be smart for a new business owner to study each of those business owners before kick starting because both of them are complex in their own way. And anyone can be successful in any of the models. I would rather say most successful business owners have the knowledge to manage an offline and online business.

Investment is closely tied to money and profits, therefore before investing of course we must have knowledge and skills related to investment whose aim is to avoid losses or risks. Even though there is definitely a risk, it can be minimized with good knowledge about investing. It's true that you said offline or online investment has its own risks. To overcome the risks that will occur, they can be avoided as long as we have good skills and knowledge.

but before that we must also pay attention to emergency funds, lest we invest but our finances are unstable. Try to invest when your finances are stable, you have sufficient income, one of them is your needs are met. because having an emergency fund is important to be able to overcome things that happen suddenly such as falling ill or having an accident or bankruptcy, by having an emergency fund this can be resolved, don't let the investment you make be disturbed and sell it at the wrong time so that it doesn't work. make a profit but make a loss. Therefore, before investing, I think you should have an emergency fund first. because investment is risky too, but not only investment, in my opinion everything is risky, but it depends on us, if we have good knowledge maybe the risks that will occur can be handled well.

i remember the saying that if we are really good at something we can always commercialize it, same thing with business, it might be better to start out from a hobby that we are really good at, something that not an average joe could do like basically building some IoT from microcontrollers or something like that and so on.
if we are good enough people will see the worth in us and eventually we can commercialize it, it will give us upperhand in the market if we are just really good than the average people, giving us better edge to start out busines and reduce that chance of bankrupty because we don't understand the field.
this is the reason why many people also find success from hobby because even at the hardest day of their business, they'd still see fun in it.

Both have their own risks, and it will be more risky if you decide to engage in an investment without prior knowledge and skills that are necessary to make an investment works. Whether its offline or online, you will definitely lose and waste your funds if you don't prepare yourself to manage and overcome those risks. With that, make sure to only invest on what you have understand, and never invest on certain investments wherein you don't have any knowledge or idea on how to make it work and profitable.

I think this is only experienced by beginners who are learning to trade, but for those who already understand how to trade by putting courage into buying coins like Bitcoin, it must be quite profitable now. Because just try to imagine those who dared to buy at $40K and now they are selling at $50K because the price of Bitcoin has passed $50K at this time. Obviously it was quite a favorable condition for them so beginners might still be affected by this in the future.

This is no longer wrong because in reality those who are always patient by risking capital and time will get quite significant profits as is happening now. Because Bitcoin itself has passed the price of $50K in a market that generally provides more profits for those who buy at lower prices. So knowledge and patience are two keys that everyone must have if they want to see real profits from the trading or investment they carry out before a big increase occurs.

The internet has opened up a plethora of avenues for people to generate income. The accessibility and potential for scalability in online businesses can lead to quicker returns on investment compared to their offline counterparts. But both online and offline ventures carry their own set of risks. While online businesses may offer lower barriers to entry and potentially faster returns, they are not immune to challenges such as market saturation, technological disruptions, or cybersecurity threats. Offline businesses can offer stability in certain industries and markets, but they may require more substantial initial investments and longer timelines for ROI.

The key to navigating these risks effectively lies in understanding the nuances of the chosen industry or niche. Success in either domain hinges on a combination of market knowledge, strategic planning, and the ability to mitigate risks effectively. People can make informed decisions to maximize their earning potential while minimizing exposure to potential pitfalls by carefully assessing their strengths, weaknesses, and understanding of the chosen field.

     Risk attitude has more to do with the individual's psychology than with their financial circumstances. Some clients will find the prospect of volatility in their investments and the chance of losses distressing to think about. Others will be more relaxed about those issues. Risk tolerance is typically measured using questionnaires that estimate the ability and willingness to take risks. The responses of investors are converted into a score that may classify them under categories that characterize their risk preferences.
    So, for investors, the first thing they consider when they seek an investment opportunity, is not how much they can earn in the best case, but how much they will lose in the worst case. If the failure is beyond your affordability, you’d better call the possibility of bad things as the end of the game rather than the risk. We need to understand that the only risks that we can bear are meaningful. If you find that something may cause results that you have no chance to turn over, stay away from it as far as you can.

That's true, however, if we look closely and be honest about everything, there are more earning opportunities online these days than offline, and one can earn more money with less investment online while physical businesses and investments require more money and more effort and return of investment takes more time than it might take for online businesses or investments. Risks are present on both sides, and precautions must be taken for any business you start.

In my opinion, the severity of risks depends on a person's understanding of the area and niche they are getting into. A businessman managing businesses in the world will have a hard time starting an online business unless they hire specialists for it. Similarly, someone who has a better grasp on online stuff will barely be able to manage a physical business because of a lack of understanding.

There is no business that doesn’t have risk, so if you are going into any business, then you should know there is a risk involved in it, whether it’s an online business or a physical business. If I am going to invest, then I will divide my money into three different parts before I start investing. I will invest some part in physical business, then I will also invest some part in online business, and then I will leave the remaining part as my reserve in case anything happens. I will have a backup, so I won’t have to start from the beginning. When you are venturing into any business, you should identify the risks involved in them so that you will be prepared in case anything happens that’s not really going to affect you.
 
Some people end up having some health challenges if their business fails due to shock, so you shouldn’t go beyond your limit just because you want to take a risk. If you notice the risk in your business is just too high, then try and leave it and venture into another business.

There is risk in every investment. Our priority is to take precautions against all risks and act safely when investing. Sometimes, even if you take all precautions, certain risks may occur. As with everything, there are risks at every stage of investment.

It is obvious that people who are especially new to investing are more vulnerable to fraud. This is where experience comes into play and we understand how important it is to be knowledgeable and spend time in the market.

There is always risk, as knowledge increases, the amount of risk decreases.

I agree that they have both risks but for someone who's got a preference, you should know which works well for you.
People that are new in investments, they're the ones that are prone to investing into frauds and ponzi schemes and they will learn from their experiences.
But if they don't want to go to that route of experiencing it, then they have to listen to those people that have experienced it before and trying to help them how to avoid it.

Whether running a business online or online, there will always be risks, regardless of the form of business, whether investment or so on. And when talking about this, it will not be separated from the knowledge and experience we have.
But I want to warn when doing busines online, because in this era there are many forms of fraud, especially in the name of investment, even though it is a ponzi scheme or fraud. Some of the people closest to me have also experienced this and even cheated in quite a large amount.
Actually, I have warned them about this, but they insisted because at the beginning they got benefits that if you think about it, it doesn't make sense. When they make a bigger deposit, that's where they will lose money.

Failing or not succeeding is the problem with offline business and getting hacked or losing your assets due to your mistake is the issue with investment online, if that's the crypto investment side of thing, but honestly risk is risk, it depend on which one you can deal with, every business has their own risks, nothing is risk free in this world.

Just make a choice, because whatever you choose won't matter in the end, you can't escape from been tested by hardship, no man can escape this fact, that's why your hustle must be accepted as your greatest fear that you need to face and rule over.

How many times are you ready to lose? This is what makes you into a better business man, how far are you willing to go? What is losing or failure to you? If it's abomination you can't succeed, it's why I laugh at people who pray to never fail in whatever they are doing, and I like saying, they are simply praying to never win, because there is no winning without failures.

I have a little advice for you and this is it.

** Don't start a business you are not used to with your money, you will most likely failed in that business and you might not make anything because as a first time business person, you are bound to make some errors and mistakes because it's not everything they will tell you until you learn it on your own. So whether you are going online or offline, don't sleep on this advice.

The second advice is this, you should know that all business has risk whether it's online or offline, someone good at online will give you some advice to go for online but by the time you give it a try, it might not worth it or you may even regret trying it out. What you should do is to develop a interest in one area and try a little from it like a form of sample, study it and see if it's going to worth it or not before you push high amount of money into it. Just know that all business or investment involves risk.

The online investment that you don't know is the riskiest thing and many fall for this mistake. They think that investing is like that and it grows like mushrooms where they can earn quickly everywhere.
Still, nothing beats the traditional businesses if you're for that and not for high risk terms. While in online investments like Bitcoin, there is no need for a debate on this one as we all know how it works.

Aggressive profits are always everyone's dream when trading, but currently many people fail, especially in trading, and this is almost the average for beginners who are very eager to make quick profits and fail to increase their estimated capital.

I think exactly as you said, whether in trading or other investments, knowledge and patience are the keys that must be implemented well in order to become a financial winner and that applies in any condition.

Risk is also part of the struggle as far as investment is involved. Others say risk is also a step to take when you really want to get rich, because if you don’t take that risk, it will be very hard to get the money. Definitely,  if someone decides to pick a business or investment, the first thing to consider is the risk attached to the business, and having a bit of knowledge on that will ensure a high advantage for you in the business or investment he or she is trying to join.

I always say the higher the risks, the higher the profit, and the lower the risks, the lower the profit, so it is just a simple arithmetic. If you really need financial freedom, you have to understand the concept of investing in any type of business, which will include knowing the risks and the profit to gain from the investment and having some knowledge regarding the business and its investment to success in life.

You are talking from a convenience viewpoint, and an individual thinking of starting a business or making an investment would indeed find doing it online much easier and cost-efficient, however, it doesn't guarantee that you will be successful in it because it depends on your understanding of both sides. If you aren't someone who has always been fond of online investments and businesses and you aren't someone who is into online stuff more than physical ones, you will barely be able to manage online stuff even if it's just an investment. So it's not just about convenience and cost-efficiency, it's also a matter of experience and knowledge about which side can have a higher success rate for you.

To be able to avoid the risks that we will face in investing or trading, we must first be able to understand well the knowledge of investing or trading and it is true that what you say in these two things will certainly have advantages and disadvantages and if we have to choose between these two things Of course it would be better for us to understand correctly what we are going to choose and how to reduce the risks that we will get from these two things and we must also be able to solve any problems that we might get from investing or trading.

I think everything is risky, so it depends on the investor, which instrument he is more comfortable investing in, I think each sector has its own advantages and disadvantages.
so it depends on each person.