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The purpose of this blog is to share what we think is valuable information that we have experienced or learned about and hopefully bounce ideas back and forth with our readers. Enjoy!

Thursday, July 9, 2009

Risky

You may be familiar with the saying "high risk, high reward". While this can be very true, we should not forget what the "high risk" part actually means. Look at a roulette table for example. If you were to choose just one number and color (31 black), your chances of winning would be very small. However, since it is so risky to gamble on just one number, the payoff is very high if you actually do win. The same can go for something like stock values. A company that people may not trust to do well might be selling shares for low prices. If you were to buy stock in this company and their business took off, you would have done very well for yourself.

Keep in mind, there is a very big difference between gambling and buying stocks, which brings me to the main point of this post: You can research risky business decisions before you make them. Going by chance is not a very smart thing to do. Yes, it can be good to make high-risk decisions, but make sure you do the proper research and preparation before actually following through with them.

Remember, it's always better to take a calculated risk than a blind lead.

1 comment:

  1. Agree! Good advice, but buying stocks still feels a lot like gambling to me.

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