The Top 3 Scariest Investment Risks

Investment always has risk factors. Well, from my experience so far, usually only three (3) of the risk most people scared when they invest:

1. Decrease in value of investment

Risk that most people scared when investing in general is “Will I lose my money?” Most people may say “no” when asked like that. Of course, is there anybody in the world who want to lose money? However, there are certain risks in any investment. The difference is in the amount of the risk. There are investment products with big risk, medium, and small. One thing that most people scared, once again is: “Will I lose my money?”

Okay, now if you invest, how much decrease in the value you are willing to handle when you lose? 10 percent? 30 percent? 50 percent? Or 100 percent? Regardless of loss you are willing to handle, remember, it is part of investing. Do not ever expect you will continue to speculate. The loss, it must be experienced occasionally. If you never experience it, you will never learn, right?

2. The difficulty of sale investment products

The second risk of most people scared when investment is whether the product he has bought is easy for re-sale. Some people may be like to invest in gold because gold is considered easy re-sale. However, there are also people who invest in the U.S. dollars currency , and quickly save to the bank. This is because when the dollar was kept in the cupboard, the physical condition of money paper may be decreased, and that sometimes will give them difficulties when the dollar would be sold again. Some banks often do not want to buy foreign currency when the condition of money paper is torn, damaged or dingy.

Other examples of investment product that is not always easy to re-sale is a collection of goods. Collection of goods in general are not always easy to re-sale because the market or buyer is very specific. Painting, for example. Because of a specific market, not always easy to sell the painting. But, once sold, the price could be very high and gives a lot of fortune for those who sell them.

So, before you decide to invest, consider first how easy it is the product of your investment can be sold again. Do not make investment if you doubt to sell them because of the goods sold is difficult.

3. Investment results is not as high as price increment of goods and services

Imagine if you invested in the deposit which give 10 percent of interest rate a year, while in a year the price of goods and services increased up to 15 percent? This often happens, not because of the price increment of goods and services which is too high, but because of the selected product itself is not appropriate.

Of course some of you want investment product that is safe and conservative. However, the consequence is that the investment results obtained may not match the price increment of goods and services. If you always experience it from year to year, then you will go bankrupt.

What should you do to face this risk? Do not close yourself to information. Learn other investment products that you may not know, and then try to go there by considering all the consequences. In a long run, you will certainly overcome the high price increment of goods and services by investing in products that are potentially to be able to give results higher than the price increment of goods.

Happy investing!

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