Saturday, August 26, 2006

Investment Risk

Investment Risk

Hi! I got to thinking recently about the desire most of us have to grow seriously rich...

Hasn't it ever struck you as decidedly odd that while the desire burns deep inside the vast majority of humanity, so few of us take the time and trouble to learn about the realities of money and investing?

I mean, if you were interested in medicine or aviation or baking, you'd invest the cerebral sweat to gain a sound understanding of your chosen area of interest. Yet, why is it when it comes to the very interesting, very relevant issue of growing wealth, most people simply decide to 'wing it'?

Let me give you a very concrete example: A classic area of unnecessary ignorance is the vital relationship between potential profits and the risks taken on to achieve them. Within the investment fraternity, it's officially called the Risk-Reward Relationship.

In the simplest of terms, the Risk-Reward Relationship tells us that the amount of profit or 'investment reward' a person can rationally hope to achieve from an investment is directly linked to the amount of 'investment risk' he or she is willing to put up with.

If you're even mildly interested in this subject, then I invite you to read an easy, brief article I've written on the subject entitled Investment Risk - Understanding and Profiting From It!

On the other hand, if you are very interested in this subject, then I suggest you sign up for a FREE month-long eCourse on the subject of Investment Risk. It comprises 16 lessons that will be emailed to you at 2-day intervals, and will rapidly teach you the basic concepts of investment risk and 15 different specific forms of investment risk. You may sign up here for this unique freebie entitled Understanding Investment Risk & Profiting From It!

I hope you enjoy both the article and the eCourse.

Take care.

Warmest regards,


Rajen

PS. If you'd like to join others who have opted to have me work with them to help improve their performance in the areas of personal finance, goal-setting and time management, please take the time to decide if this option is right for you...

After years of thinking about it, I've finally launched a 'lite' version of my elite life planning consulting package. This shorter, online-based version lasts a whole three months, and focuses on the three core life planning areas of personal finance, goal-setting and time management.

The price of this 13-week email- and online-based consulting package is less than one-ninth of my regular consulting rates.

If you're interested, drop me a quick email to

mailto:sales@RajenDevadason.com
(or simply copy-and-paste sales@RajenDevadason.com
into a fresh email) with

'Rajen, please tell me about your new consulting package',

in your subject header.

Warning: This service is NOT for everyone.

Please only write to me about it if you are 100% serious about joining this programme.

Thanks. Stay well.


Rajen Devadason is CEO of RD Book Projects and its sister company RD WealthCreation Sdn Bhd. He lives in sunny, peaceful Malaysia with his gorgeous wife Rachel. He's a Malaysian Securities Commission-licensed financial planner, a life planning consultant, a professional speaker and a serial author... which probably explains why he's so exhausted! Some of his books are available here, and, if you're interested, here are some quotations he reckons are accurate, bold or cool.

2 Comments:

Anonymous Anonymous said...

Saving involves less risk, if not zero risk and guarantees a return, that is, a low interest rate. Investing is generally riskier, thus creating opportunities for higher return on capital. This 'risk-reward' tradeoff doesn't apply to bad investments though.

Sunday, August 27, 2006 4:50:00 PM  
Blogger Think Extraordinary said...

There are three distinct risks you must guard against; they are business risk, valuation risk, and force of sale risk.Investment Risk

Monday, June 02, 2008 5:30:00 PM  

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