Investment is risk taking and that is why most people fear investing because they can’t just get over the fear. The thought that in case something goes wrong and they lose their money say their life savings is unbearable. This situation then raises the question; When is it okay for someone to take a risk? When is it safe? Well the answers to this question is solely dependent on yourself.
When I was like 16 year old a good friend of mine passed by our house. He is always a very happy fellow who always had lots of stories and could not stop smiling. But that day even a small kid could tell something was off. He was not himself, not even close. He looked dejected, confused not knowing what to do with himself and from the look of things he was looking for someone to confide in. He was looking for a shoulder to lean on. Well I could not tell what was going on with him until he started opening up.
It turns out my friend had lost his money. He told me he had lost all the cash he had saved since he was a little kid. He did not tell me how much it was but money you have been saving since you were a small kid must be a tidy sum and the fact that you have been saving it since you were young and now you’ve lost it can make you turn you into a drunkard. I was eager for him to open up more, I needed details and circumstances he had lost his savings so I encourage him to talk more.
My friend had lost his cash through gambling ; mobile betting to be specific. Well that was not a surprise since at that time I was also doing mobile betting and once in while we would sit with him and discuss what teams we would put our money on. The surprise was under which circumstances had he staked such a big amount of money yet we always agreed to stake an amount that even if we lost we would be okay with it.
That was when he gave me details. He said that he had joined some telegram channel and while there somebody approached him telling him he worked as an agent in one of the betting companies and given the nature of his job, he was not allowed to bet. So to make up with the inability to bet he usually sells legit odds to people who are interested. To make my friend believe his story he sent him some screenshots of games he had previously predicted and won together with some screenshots of whatsapp messages in which his clients were thanking him. He said they are always fixed matches and the chances of losing were 0%. The man was so convinving that my friend saw a chance of becoming a millionaire at such a young age. My friend told me the games that the man sent were only two and on top of that it was teams that he had never heard of despite his many years of gambling. That proved that the games could be manipulated.
The predator had set its traps so well and with a good bait the prey had no chance but to bite. My friend after being convinced that there was no way he was going to lose sent the man some money for the games and after the man sent him the games, my friend broke the only rule that kept us gambling and alive; Stake an amount that you are okay losing. My friend told me that from the possible win, he could be having enough money to live a dozen lifetimes.
Anyway to cut the long story short, my friend woke up the next day expecting to be a millionaire but it never happened. Neither of the teams he had bet on, won. He told me he tried reaching the man for a refund but the man had blocked him. That way my friend lost all his savings.
While the story of my friend is a few investment stories that went wrong. So many people have lost their money in investment dreams that never were. So when is it okay to take the risk and go on and invest? Tony Robins in his book 7 simple steps to financial freedom says that among some financial myths is you gotta take huge risks to get big rewards. I totally agree with him on this saying that it is not a must that you must take a huge risk in your investment to get bigger rewards. The answer to whether you should take a risk is solely dependent on you but be smart not to lose your cash. Tony Robins tells us in his book to remember Warren Buffett’s top two rules of investing Rule 1: Don’t lose your money, Rule 2: see rule one.
I am going to give you rules to follow so that you can see if you can take a risk or not;
- If the risk is not worth it, don’t take it.
- Do not lose your money
- Risk a little, that which you can live with even if you lost.
Be smart before taking a risk. Whether or not to take a risk is dependent on you!