Are you a risk taker?

I know this topic has been discussed many times. I kind of like to bring this up to see how other members adjust their mindset to take risks.

I don't think I am a good risk taker at the moment. I do believe many people have the same mindset problems, especially when we are getting older. I think I was a better risk taker when I was in high school with no money. I did many crazy things without thinking. Now the more I think and more money I have, the more hesitation I have.

I always mix the risk and money together. I always evaluate how much money I will lose or how much time I will waste if I take certain risks. At the end, I did not lose any money, but did not gain anything either. That kind of thinking is killing my progress. I know doing research before taking risks will lower the chance to fail, but I often spent too much time on research and end up doing nothing. I did, however, take action and invest high risks stock and end up lost everything without doing more research.

I did a little Googling about how to take risks. Here are some of the great articles that I want to share.

How To Take Risks » The Definitive Self Improvement Blog - BrianKim.net

Stop thinking of risk as just a one shot do or die situation. Instead, start thinking of risk as a journey of exploration.

Go on a journey of exploration and focus on your desired outcome. Don’t focus on consequences.

Becoming A Risk Taker | LIVESTRONG.COM

Leadership: Willingness to Take Risks | Learn This

Taking Risks: How to Take Calculated Risks to Get Ahead in Anything

I would love to hear your opinions on how you handle risk taking. How do you measure your outcome and calculate your investment before taking the risk?

I definitely know what outcome I want, but I am uncertain how much effort I have to put in. It's not like putting money in the CD account. You can calculate the outcome in advance.

I need a big hammer to hit on my head!

Thanks in advance.

I take a lot of risks. I'm young but I take a lot more than my friends do. Financially I might come out better, even or worse off. One thing you always get from taking a risk is experience and you cant always buy that. So if I loose some money I think that was the price of my experience.

I like to analyze the risk before I take it. Usually the best and worse scenario. I look at how much time, effort and money I have to put in and what I will get out of it financially and mentally. I think sometimes it makes sense to loose a little money and gain an experience not many people have had. With big decisions I never go in expecting the best scenario. I try to over estimate the costs and underestimate the return. I also try to take into consideration things I cant control, both positive and negative. If I do come out worse I dont cry about it. I just accept what happened, look at the mistakes I made and see if there was anything I could have done to make it work. Also I like to look at my original analysis to see how accurate I was.

So what happened now with these stocks? You didn't research and you invested, or you did research, invested and then never did more research to see what happened?

...There is a learning curve to every facet of investing/business. You look at people like SteveO--he dug his heels in, went to several authorities on apartments and apartment investing, got started and rode/rides the bumps in the road.

As far as how much effort you will have to put, I'd say figure about 5 times more than think is necessary should cover ya.

I did research (probably not enough) and invest. I, indeed, expected too much about the outcome. I thought that will be a long term investment, but it went to hell after market crash and never came up. I did not get out quick enough.

Thanks for bring SteveO up. Now I know what my biggest risk is.

I am doing something I am not so familiar with. It will take me a lot more efforts to be good at it.

I was once switching lane from molecular biology research to IT. It was a great success, but it took me 10 years to realize that I am just a corporation slave. Now I am taking a much bigger risk to change my life again.

The bright side is that I am starting from the very bottom in the business world. I really have nothing to lose and I have my strong programming background to support my move.

I just need to have more patience.

Thanks!

TerenceChang, everyone is a risk taker. Some more than others.

Just living is a risk. The risk of dying which is a 100% risk factor.

Quantum physics also give you a good idea of the whole concept of risk. We all risk all the time.

Walk out the door: risk
Start a compnay: risk
Find new friends: risk
Find new lover: risk

Everything is risk. All of those things above can lead to big disasters that immediately puts in place the 100% death factor. Speeds it up if you so like.

I think the only real smart thing anyone can do is live life without thinking too much about the risks. Rather what they can get out of it, enjoyment wise. Talking about "risk" is a way of discussing fear in other terms than fear. Risk and fear are partners in crime.

Thanks fanocks2003:

You are so right. Everything is a risk. We either live or die. We either stay or move on.

I truly believe mindset is the #2 key to success after #1 taking action.