When market is efficient, risk and return ratio is always in line with each other. Is that possible to get low risk but high return? Yes, of course but it requires something else to achieve that. Here is more closed look at your investment by following criteria:
Capital
Time
Risk
Return
Knowledge
Experience
Biz: it can start with low capital and generate very high return. But it requires extremely large amount of time, extensive knowledge and experience to achieve high return.
Property & Stock market:
1. For passive investor: you are most likely to have average market return with low risk exposure. But it requires large amount of capital and a lot of time.
2. For active investor: you can have high return with low capital. But it means you highly leverage in this game and comes with great risk and also requires extensive knowledge and experience.
You need to know what your biggest weakness is and choose the investing strategy matches your strength not your weakness. For example:
My biggest weakness is “no money” so passive stock market investor or property investor won’t suit for you.
My biggest weakness is “no time” so active investing or business not suit for you.
My biggest weakness is “no knowledge” so active investing or business not suit for you.
What if you want to have low risk, low capital and high return: please go to bed early and ready for your job next day morning.
Comments
Post a Comment