I’m a Forex trader and have seen many investors chasing after high returns and often I have asked these people what they would say the biggest risk regarding investments are. Their answers vary considerably, but seldom do they answer that the biggest (and only) risk is ignorance.
The only financial risk for you as an investor is the risk of losing your capital. The only reason why people lose capital is because they are ignorant. They do not know what risk is, how to define it, how to manage it and how to eliminate it completely.
They think...
“you must have money to make money”
“ the bigger the risk, the bigger the reward”
This is simply not true but too many people go bankrupt as a result of these beliefs. They do not know how to make their money work for them or how to get exceptional growth on investments. Perhaps more importantly they do not know how to manage their financial risk down and at the same time increase their growth.
It is the Risk and not the lack of growth that ruins people financially. If I receive a 100% growth this may look wonderful but unless I can determine the risk I will not invest. Why not? Because it is the risj that ruins the investor financially. Let me explain. What is the point of investing at say 100% growth if I know for sure that I will lose everything that I have invested and gained over a period of time?
There is a solution though. Take responsibility, educate yourself and take control. My first “Law” is to educate myself prior to investing in any investment or business. As for the Real Estate, if you are about to sell and chase a
PPP because of perceived “better” returns, I find your motivation risky in itself and maybe you should reconsider. Contrary to popular belief, there are less risky investment opportunities in the forex markets than there are in PPPs. Again, unless you can identify the risk and manage the investment I would say it is not good to continue with the investment.