Risk and reward are linked. How much you risk is proportional to how much you will be rewarded. If you want to take small risks then you will have to take many of them. Otherwise you can take one giant risk. When it comes down to taking one giant risk and putting all your eggs in one basket you better make sure its the right basket. There is no one right or one wrong way. There are many ways to lose and win. When it comes to investing Warren Buffet has proved that taking giant positions on wonderful companies pays off a handsome reward.
Tag: Risk
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noiz viol8ion blog #611 – Cap Your Downside
Ted Williams is one of the greatest hitter to play baseball because he knew what pitches to swing at and which ones to let go. He knew his probability to hit a baseball depending on where the ball was when it crossed the plate. He knew his sweet spot and his cold zones. This is how you should approach every decision you make.
Know where you are most likely to succeed and where you are most likely to fail. Take the most swings in your sweet spot. Minimize your risk of failure by knowing yourself and knowing your strengths and weaknesses.
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noiz viol8ion blog #417 – Risk to Reward Ratio
How confident are you?
Are you willing to put your money where your mouth is?
If you believe something then how much do you believe in it?
We must be willing to risk it all to gain it all. If you give everything you have then you will gain everything you want.
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noiz viol8ion blog #366 – What is the worst that could happen?
What is the worst that could happen?
If you answer this and you can still survive then you might not be as scared to take the chance. If the reward is so big and you can handle the worst that can happen then you have to take the chance. You will get no where if you do not take chances. So take the biggest chances you can while understanding what the downside is. Be comfortable with the risk. Each step you take the risk is going to feel scarier but you are at a different point in the game. You have to stretch your comfort zone and be willing to take a few punches. Just don’t take the punch that will knock you out.
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Blog #229 – Should you put all your eggs in one basket.
Diversification is a big topic among investors.
Is it better to have all your money in one thing or to diversify across many things?
There is no easy answer because it revolves around how risk tolerant a person is.
Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1
Warren BuffetYou are not going to have many great ideas or many great opportunities so when these things come you should take advantage of them as much as you can.
There is no such thing as a sure thing so know your downside.
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Blog #215 – Risk It All to Get It All
You must be confident and comfortable with the risk you are taking. Do not be willing to risk it if you are not prepared to lose it. It is only a matter of time til you lose and you have to be comfortable with losing.
To make the hall of fame in baseball all you need to do is hit the ball 1 out of 3 times. Nobody is perfect.
You miss 100% of the shots you don’t take.
Wayne Gretzky -
Blog #191 – What’s the probability of that actually happening?
Be optimistic about your end game but be realistic about your life.
Optimism will drive you to achieve great things and take giant risks. Optimism will take you on great adventures and you will do things you have always wanted to do. Optimism gives you permission to have enormous goals and vision for your life. Optimism lets us see the good and the potential in people. The world would be a depressing pessimistic place without optimism.
The downside of optimism is that it will blind you to the risks. It will cause you to take giant chances that you shouldn’t be taking. Optimism will make you take enormous loses that are hard to recover from. You have to use realism and pessimism to mitigate your risk. How likely are you to succeed? How likely are you to lose? You must be completely comfortable if either one of these situations happen. Don’t be naive to the negative.
Knowing you are protecting your downside allows you take bigger risks. It is a fine balance you must walk because if you are always preparing for your downside then you will not take massive action for a huge upside.
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Blog #147 – Gotta Risk it for the Biscuit
Put yourself out there and take risks. Nothing is going to come your way if you stay doing the same thing that you have always been doing. For things to change you have to change. Commit your all into progressing and improving yourself. The more you invest in yourself the better you will be for your career, your relationships, and health. Turn you should’s into musts and raise the standard for yourself (Tony Robbins) because you can do more than you think you can. You can do anything you put your mind to as long as you stay positive and are not afraid to fail. Failure is a prat of life and is only a lesson on the way to success. You must take calculated risks. If you fall then get back up. One day you will not fall and your dreams will come true. Take the time to make yourself great because it will be worth it in the end.
noiz viol8ion 