Topic: Only young and naive guy believe in high risk high return - page 7. (Read 1408 times)

High Risk High Return are basic fundamentals on investment. and that must be accompanied by knowledge, experience, the concept is old and can still be applicable with any investment choices, knowledge is also needed in all kinds of investments, if carelessly and just because people brave to accept risk without having knowledge first and without experienced there will be problems later. either about how to manage it or something else.

High risk takers end up being either big winners or big losers.

If you have nothing and you want to succeed fast, the only way to do it is taking high risks. If you win it could be big, if you lose it wouldn't matter much as you started with nothing.

But, for the average Joe, who has a job, a mortgage, a family... this high risk = high return fallacy is way too risky. The only argument that is true is that high risk = high risk.

I agree that it has a lot to do with personality. Risk takers won't hesitate, and we all know case studies about them, successful entrepreneurs who made a fortune thanks to their bravery, but those who are more cold and logical will learn the rules of the game in such a way that they will know how to win without the necessity of risking anything. For example, when we talk about venture capital, the ones who are risking a lot are the entrepreneurs there, not the fund itself: in this relationship we can see both personality types clearly defined.

In crypto we can see it clearly too: there are the ones who invest the money they can't afford to lose, and others that will win (more or less) no matter the odds, just like the typical brokers of wall street who earned money whether their clients won in their trades or not.

I am not a genius, I am only a normal guy. I don't stuck at high risk high return pattern in investment. For example if I invest in my friend's new project while he don't have any skill and experience then I take a big risk but there is no opportunity to get high return. In investing I looking for the lowest  risk and higher return that I can get. In my point of view Bitcoin provide small risk and higher return rather than bank deposit and etc. The price is volatile but since I know it then I only need to know when to buy and when to sell. If there is a new altcoin project which has great people behind it I will still invest in it although the risk is higher than bitcoin but it has very good potential to give me higher return. Now I invest in TRX because I think it has good potential to get big market share of gamers community.

I have to say there is a good reason why we are talking about people who end up with higher returns because they took bigger risks, and that is not because they just won a lot of money, that is because they found something that none of us would have the courage to invest so much (not even just in number, but % portion of portfolio) and that was a huge risk to take, I can't do that.

For example, my "small cap" coin that I like is Swipe, it was bought by binance, doesn't mean that binance will be using it like crazy but they did, and what happened? Did that turn out to be a a big investment that turned into profit a lot? It didn't, and that is why I do not feel happy about investing into it.

However if I took a big shot at it, I would have lost a lot of money with it, I see this and I think there is no need to invest into smaller caps like that, it just solidifies my belief. On the other side there are people who goes out there and puts 50% of their whole money into some small cap and make a great return, it is really brave.

I don't understand what you mean by the problem? Are you in the military? In economics, high risk, high return, it accounts for the majority of the success they have. Compare that to the army that was sent into wars and received impermanent losses. I think it's contradictory.
The scope for economics is macro, I don't think your problem is and it has nothing to do with investment/profit

Definitely has some truth to it.

The fact of the matter is that a lot of deals are only available to the elite to begin with. The private equity deals that are available to a dentist, for instance, will be worlds away from private equity deals afforded to investment bankers who has a high net worth.

High risk =\= high reward always. Whilst the correlation is true in certain asset classes, it definitely does not hold in fields where some have an artificial advantage over others to begin with.

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>Quite a bold claim, knowing that using the war analogy is actually nonsensical because you're pretty much risking not only money, but your life. You can re-earn money, but you can't re-buy your life.
Executive Order 6102 is an executive order signed on April 5, 1933, by US President Franklin D. Roosevelt "forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States." Would you mind to explain the logic behind someone would goes extra miles just to stop you to get money (gold coin), would you care to explain?

>There's literally nothing wrong with having high risk high reward investments as long as you practice proper bank roll management(obviously going all-in is a bad idea), and that you actually know that the investment you're making is high risk high reward in the first place.
It is obviously very wrong no matter how you argue, go ahead and gambling on the Las Vegas with all your very best practice management.

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>Between why must the risk only related to war? What about investment risk and similar risk as well?
Executive Order 6102 is an executive order signed on April 5, 1933, if it’s not a war declaration then what is it?

>People took a high risk believing in btc and they were handsomely rewarded, I for once will not take any unnecessary risk except it has to do with earning something in return or a positive benefit, to me, not all type of risk that is worth taking, 
Is it not obvious enough nobody would want to take risk when they know very well?

>especially the type that has to do with war should be highly considered before doing anything that could lead to regrets. In any situation there are always certain people who will benefit from it reason why it is very important to think before acting.
Wars is a lot of risk taking too, do you blindly believe they don’t make risk management before going to a war?

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>Soldiers are trained before they are deployed to a battlefield. They are equipped - physically, mentally, and emotionally strong enough to do their tasks and duties for the country. In simpler terms, they are fit for their job because, in the first place, that kind of job position requires certain qualifications to be able to secure a spot.
this is just a risk assessment in my humble opinion, they are making sure they can successfully execute the war. If the wars failed they couldn’t make profit.

>But this is totally unrelated to cryptocurrency. World war doesn't equate to crypto. You are making the wrong analogy here.
Executive Order 6102 is an executive order signed on April 5, 1933, by US President Franklin D. Roosevelt "forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States." Is it not slightly related?

>In cryptocurrency, you only risk what you can afford to lose. You should know that the moment you entered the crypto world.
what do you know? the coin?

>High risk, high return is applicable only if you know what you are doing and you analyzed and studied your move before doing so. Risking a high amount will be nonsense if you'll invest it in the wrong coins. Hence, you should do your own technical analysis first and make sure you'll regret nothing once things go wrong.
Do you know Las Vegas casino? High risk high return? You can beat them into net loss?

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If you compared between war and investing, they are totally different. It's not comparable, war is a risk that is very visible in its impact.  Investing is a step to financial freedom, so the risks cannot be seen with simple logic.  You must learn risk management to measure the risk of investing.  War and investment is not an apple to apple comparison.  Your logic is slightly wrong comparing the two.
explain this if you think the logic is wrong, why they goes extra miles just to stop gold? Executive Order 6102 is an executive order signed on April 5, 1933, by US President Franklin D. Roosevelt "forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States."

I don't think the young and naive ones are the only ones who believes in high risk high return. Also the wise and strategic ones. If you are too afraid of taking a risk, therefore you have no rights over something that could set off a huge reward. Always make sure that the risk you will take, no matter how big or how small it is, will be well analyzed and speculated so that the probability of winning will always be high. If you have no time speculating, you should not take huge risks then, those are only for people who knows how to prepare for a war.

Everything in this world that offers something will always have some form of risk involved, even those you call free oftentimes have something underlying that will of course include you staking something in return. If we would all base on your logic, then there wouldn't be a future for the cryptocurrency industry because everything here and virtually everything will involve you partaking in high-risk, high-return transactions. A majority of people who wouldn't invest in high-risk, high-reward scenarios are elderly people and that is because they pretty much have a broader experience when it comes to being cheated on by the game, so we can't really take it against them. However, we should focus on making sure that the next generation is armed with ample knowledge and information so at the very least, they can protect themselves from being fooled out of their money, and so they can impart these helpful knowledges to their children as well.

Chances are, that you won't be quite successful making money if you do not take risks, not just in crypto, but in every aspect of life. Bitcoin is also considered a high risk investment, which had extremely high returns the past few years. I've also came across this in DeFi projects. Higher risk ones had great rewards, while those who involve minimal risk, made me only a few bucks at most.

On top of that, I don't think it has much to do with age, rather than the personality and your character, some are risk takes, some others aren't.

Well if you look carefully you will see the old people usually don't risk and that's because of their age. time after time when you get older you will avoid taking risks. that's why you think many young people will take the risk of high return investments because they feel like they don't have the time/power to get up if they fall down. However, taking risks is good if you know exactly what you do, investing in stocks and bitcoin is good if you know what you are buying otherwise you are taking risks with a closed eye. Also, doesn't matter if you are old or young you should always remember to have your plan and stick to it if you have the enough knowledge about the market.

I also wonder why the OP equates war and investment, war and investment are very different things and over time young people have their own ideas about how to invest. I think the OP was a little drunk while making this post

Correct, also money is meant to make life easier so investing, trading, etc are all actions taken to make the life easier. Life cannot be ever compared with money, full stop. Spending money and life are two very different things.

Young people usually have a higher risk appetite because they have the energy, motivation and time to take the risk. A kid cannot invest because he doesn't earn and an adult cannot take risks because they don't have the same energy and motivation.

I recall a graph or image I saw somewhere and it fits well here.

Kids have the highest energy and time but least experience and knowledge.

Adults have high energy and time along with financial freedom with moderate knowledge and experience.

Old people have rich experience and knowledge but lack time and energy.

This is why young people would take the biggest risks in terms of investments.

I had exactly the same feeling. Investing with high risk for a huge return is a mentality and not a problem but risking your life for a huge return isn't a mentality but a problem. People fighting in wars are not doing it because they expect a huge amount of money or such, but they do it for honor and pride most of the time. One may take pride in giving away his life for his country while someone else may not and none of them is wrong or right.

War is a completely different scenario and investing shouldn't be compared with wars quite frankly. Crypto investments have always been termed as high-risk investments by a lot of high-profile traders and that isn't taken in a negative sentiment by anyone because crypto indeed is volatile.

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>Your post not very consistent. Is high risk the problem or taking risk at all?
do you think it’s plausible to take risk under current circumstances? Let’s say you have just one credit left to beat an arcade game from level one, take all risk, and only make the risky moves, or stay safe, keep defending and wait for opening to make your moves?

>I can guarantee you that most adult regularly take risk in their businesses but the responsible/experienced ones try to minimize risk as much as possible while working to be profitable.
they take risk in their business and goes broke? Or they take risk to circumvent the martial laws?

>So, both young and old should be well prepared to avoid taking big risk.
now you think it’s not good to take risk, so how about taking risk in business again?

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>I don't really understand what you mean by making this post...
I think even toddler can get the idea, you need to read again and again to fully get the point.

>high risk is good when you know what you are doing, cryptocurrency is an example of high-risk high return, and you see what is happening in the market that many people are also successful from high-risk investments like cryptocurrency.
are you blinded by just the reward from the high return but not considering the high risk they went through? Do you ignore the 98% chance of high risk failure rate?

>basically, you have to know how much risk the asset you invest in, never invest in things you don't know.
I think it’s the same guy who tell you to invest in stock market, they also tell you fundamental... invest in blue chip... invest in stock market... don’t sell you haven’t loss if you didn’t sell.

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>It is understandable that when you are 20 years old, you could put in 50-100 bucks and try to go for that 100x profit, or read the 100 dollar startup and try to make the same thing, or hope that you will one day work for yourself and have your own business and hire people and get rich.
delusional, making 100x profit requires to scam a lot more people than making 2x profit.

>Those type of big dreams usually happen when you are younger, because when you become 30+ years old like me, all you want is stability in life, for example I have a great job right now, and I am willing to work like this for 30 more years and then retire as an old man and just relax, that is a valid thing for me, I am not after huge sums of money anymore like I used to.
that is ambitious to think of simply settle down for one purpose for the rest of life, thing always change, and life purpose always change too.

>Nowadays my "get rich" dreams usually involve a lot smaller stuff that requires me not working, for example get enough money to retire now and go to a sea side place and simply read, watch netflix, swim and repeat that until I die, not own a billion dollar worth business.
that won’t be possible without putting some effort to make it, it’s also probably what many people want to achieve, which is why it’s more challenging since everybody want to go to the sea resort and retire, very soon you have so much people all in the same place, the place become plagued with unrest.

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>Sometimes young people are the most lucky ones, they still have their chance of loosing. So, why not?
what is the “they have chance” are you blabbing? Do you think they have more credit in their arcade games than everybody else? How many coin they have and how many coin everybody else have? They have more coins?

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>Nope you are wrong, you probably failed in taking risk that's why you are saying this stuff regarding high risk, high reward is a bad thing.
you think it’s wrong?

>I don't see how you are right about it, of course you compare elite to plebians like us which is the right thing to do,
Now it is right? What give??

>they don't take risk because they already have the money and if they park it at the safest place, it will eventually go up.
So, don’t take risk?

What I believe your post is trying to talk about is some countries who make weapon of war always like to instigate wars so that they can sell their machine and war materials because for them it is business and making money and whether young people die or not isn't their business. They make agreement with some government to trade in troublesome environment so that issues of conflict will keep arising

There is actually more to it than being naive. One thing that an older investor will tell you is that younger people have one of the most important assets when it comes to finances - they have time. That allows them to make mistakes and recover much easier than someone later in life who has less room for error. Naturally there is also a learning curve where people have to make and learn from their own (hopefully small) mistakes to become wiser.

This is BS to a certain degree, yes OP is right but not in a way that OP thinks, high risk investment without an extensive knowledge of the investment is the naive thing to do but if you are otherwise, then you will probably have no probably because you know that your risk is worth it because you know about it and you know the potential can bear fruit.

The various altcoins and air coins that have been popular recently are examples of high risks and high returns. Investors who like high risks and high returns are stupid. Wealth doubles, but it is also possible to have nothing. Many Aircoin altcoins have not yet passed the security audit. This is not safe. When you buy an altcoin that has not passed the audit, it is actually equivalent to putting your property into the other party's wallet. If you like low-risk cryptocurrencies, I strongly recommend that you buy mainstream coins, Bitcoin, Ethereum, etc., but if you choose to buy altcoins, I think no one can give advice because it is not safe.

The analogy of war that you have given is very true and we all know brains of those admitted in army are brainwashed to such an extent that they are trained to think about nothing but their duty. To some extent they are our heroes as they protect us from the evil but the truth is that on the other side too are some similar heroes of that country who are losing their lives for that country. And all this has happened merely in a quest of power and resources.

Anyhow, coming back to the risk return things, markets are not similar to war in any context, people do say that wall street is a war from traders but truth is in markets it's upto you if you want to be the Hog that is murdered in the battle or the elite who make profit from this battle. High risk, high return is a thing but has to be done with your risk profile in mind. If you are risking more than you afford to. You might make profit for 99 days but will lose all that profit in a day.