How do you get comfortable with taking financial risks in an effort to get long-term high returns?

Answer 1

Do your research on thoses things. See what is steadily rising. Not fast, slow.

Answer 2

I think Robert Kiyosaki said that he never met a millionaire who hadn't lost money in an investment at some point, but he met plenty of poor people who never lost a dime. Winners may not like losing, but they aren't afraid of it. They don't mind taking the risk because they know that if they have done their research and factored that the reward far exceeds the potential risk, then it will be a worthwhile endeavor. The best way to reduce your risk for anything is to know as much as you possibly can about it. Losers on the other hand are afraid of risk. Risk is everywhere but the more you learn and the more you do, the more you get used to it simply as a normal part of the equation and you can then decide if the amount of risk makes the investment worthwhile.

Despite what the pundits will tell you, higher returns don't always come with higher risk. If you have a well thought out plan that covers what you will do both if things turn out well and if things go the other way, then you will know exactly how to deal with the risk. The biggest thing that I can't overemphasize is the more you know, the more you can understand the risks and the less inherent risk there is. But there will always be winning plays and losing ones but as long as your winners either outnumber the losers all things being equal or the winners are much greater in value than the losers when they do happen, then things work out. I believe its a matter of studying the probabilities or chances of success versus failure that helps determine risk. If you are doing something with a low probability for success and a low return to risk ratio, it may not make sense. I hope that helps.

Answer 3

Some people can't. I am a bigger risk taker than my wife. I am willing to invest in high risk/high yield stocks and such for the chance of big money back. My wife is less risky, and she'll not change that because she is just not as much of a risk taker as I am.

Answer 4

There is no best of both worlds.

If you want guaranteed returns, you have to lower expectations & get lower returns like fixed deposit, savings account & guaranteed saving plans.

If you wish to be less exposed to risks, go for regular savings plan with unit trust for dollar cost averaging.

For longer term investment to accumulate wealth, go for strong fundamentals unit trust (less exposed than shares as it is a portfolio) or defensive shares like blue chips or incoming generating shares (divdends paying) or even property investment (rentals are a recurring income for you) :)

Long term guaranteed returns = Stay employable =)

Answer 5

I don't think that it is wise to ever be entirely comfortable with taking risks. That discomfort keeps you from taking a risky action before thoroughly investigating it.

Answer 6

Never ever invest more money in high risk situations than you can afford to lose. High risk money is money you wont miss if you lose it.

Answer 7

You can't that is why its called a risk. I say go for it and see what happens. Its just money...its only worth what you spend it on. You can't take it with you when you die so just use it now and damn the consequences.

Answer 8

I don't think you ever really get comfortable. Once you have made your decision, you just go for it. If it makes you feel too uncomfortable then it might not be a good idea.

Answer 9

best not to get comfortable - ever vigilant - control downside risk with Stop orders on each holding.

Answer 10

You don't really get comfortable if you are taking risks.

If you feel very uncomfortable, take less risky investments into consideration.