Just For Thinking ….
Once we fully understand the basic concept of Risks vs. Returns and develop common sense in finance and investment matters we will not become victim of greed.
1. Low risk and low return
When the risk is low, the return is expected to be low.
2. Low risk and high return
Red alert! This is highly not possible in a free market environment. Don’t ever let the Greed overcome you and become foolish. A fool and his money will soon part.
3. High risk and low return
Warning! Many of those financial instruments that are highly leverages are actually high risk and low return when you are lacking in knowledge and skills in executing these financial instruments by yourself and depending on your financial advisers to complete them for you. Your financial advisers will be eating into most of your returns and leaving you with high risk and low …