Lets begin:
- Do you want to double your income? and
- You don’t want to have a boss or to answer call from your work? or
- Wanting to retire early and have enough money to travel the world!
Possible solution? The Stock Market!
2 key investment risks
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Returns are not guaranteed – While stocks have historically performed well over the long term, there’s no guarantee you’ll make money on a stock at any given point in time. Although a number of things can help you assess a stock, no one can predict exactly how a stock will perform in the future. There’s no guarantee prices will go up or that the company will pay dividends. Or that a company will even stay in business.
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You may lose money – Stock prices can change often and for many reasons. You have to be comfortable with the risk that you might lose all of your money when you buy and sell stocks, especially if you’re not planning to invest for the long term. If you use leverage to invest in stocks, like buying on margin or short selling, you could lose more than you invest.
Therefore, you will need to understand the risk of having your hard earned income put in the stock market. Having first hand experience from putting earned dollars into the stock market only to realize painful losses after losses, has to put the importance of understanding what is Risk.
Risk On, Risk Off Definition from Financial Times Lexicon
At the beginning of 2013 analysts speculated that the era of Risk On, Risk Off might be coming to an end because there were signs that the US Federal Reserve might be leaning towards ending quantitative easing at some point during 2013.
The market sentiment seems to flip flop back and forth on a daily basis between a “Risk On” and a “Risk Off”. Reading Risk Sentiment is as simple as following the direction of the US Stock Market.
Each day, it seems a new rumor is produced and the stock markets shifts accordingly. The seesaw action can take a toll on a trader’s emotions
How to Read Risk ‘OFF’ or Risk ‘ON’ Sentiment
Previous: How a Stock Move Translates to a Currency Trade The market sentiment seems to flip flop back and forth on a daily basis between a “Risk On” and a “Risk Off”. Reading Risk Sentiment is as simple as following the direction of the US Stock Market.
RISK ON
In Conclusion, you have to ask yourself, is this RISK worth taking? A lot of people realize when they look back, it seems they were better off spending the hard earned money buying a car or fulfilling any small tangible dream.
and of course…
- keeping their job until they retire 🙂
