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Too often, we see only the rewards and neglect the risks that comes along with it.
Think about your career, you may not be happy where you are and envy some of your friends who are earning more than you, have a nicer job title, fly around the world, etc. But, on the flip side, did you consider the risks that come with it as well ?
Say, your friend is in the Information Technology sector, one of the most competitive industry globally. He has to constantly upgrade himself as technology gets obsolete fast. His time spent jetting around may means he has lesser time to spend with his family as well (and even on weekends). What you are enjoying family time, he is on the other side of the world doing presentations to clients. You are enjoying while he is suffering, you can put it that way.
Similarly, there is so much hype and advertisements on cryptocurrencies and how it can make you a millionaire and all, that so many are drawn to it like moth to fire.
The chart shows you it breaks out of the consolidation phase after nearly 3 months of long waiting and it shoot up more than 20% to reach a high of 12,000 price level. And before you are ready to pop your champagne, it spoils your mood immediately and strike at midnight with a 12% plunge down.
Those who did not take profits and maybe caught it at high price of 11500 and above are in the red now. And those who got in at say, 10,000 price level are faced with 2 options -
1. To cash out now for fear of another 12% or worse situation
2 To hold and pray that it continues to go up
It is human nature to want the best of everything for the least amount of effort like winning a lottery. Imagine exchange $1 for $1,000,000 , who doesn't want that? And it is precisely for this reason alone, punters are willing to queue for hours to bet on their chances.
Imagine there are 100,000 people islandwide queuing to buy the lottery tickets at $1 per ticket on that day. And say, on average, they spent $5 on the tickets. And they can buy 7 days a week, that gives us
100,000 X $5 X 7 days = 3,500,000
Of course, my calculations is way too simplistic as there are many products you can buy at the betting shop. So, if one person strikes the lottery at first price of $1,000,000 , after the payout, the Lottery company still earns 2.5m. I am sure this is a conservative figure.
Sadly, I am also seeing more scam advertisments on social media telling punters to buy into their system where they can correctly predict the first prize for you. Does it make sense to you ?
Nevertheless, I am sure there would be a group of people who believes in it and bought it. That is how the world of money operates. If you can find a sufficient group of people who believes in your product/services, then you can make money out of it.
With fractional shares that retail investors can invest these days, one is much better off parting their hard earn money into good quality companies like Apple, Ten cents, etc and see their money grow over time than to regularly visit these betting shops and lose their money away.
Lean on the game of higher probability of winning be it stocks, forex or commodities. It is not easy but it is doable if you put in time,effort and commitment to it.
Too often, we see only the rewards and neglect the risks that comes along with it.
Think about your career, you may not be happy where you are and envy some of your friends who are earning more than you, have a nicer job title, fly around the world, etc. But, on the flip side, did you consider the risks that come with it as well ?
Say, your friend is in the Information Technology sector, one of the most competitive industry globally. He has to constantly upgrade himself as technology gets obsolete fast. His time spent jetting around may means he has lesser time to spend with his family as well (and even on weekends). What you are enjoying family time, he is on the other side of the world doing presentations to clients. You are enjoying while he is suffering, you can put it that way.
Similarly, there is so much hype and advertisements on cryptocurrencies and how it can make you a millionaire and all, that so many are drawn to it like moth to fire.
The chart shows you it breaks out of the consolidation phase after nearly 3 months of long waiting and it shoot up more than 20% to reach a high of 12,000 price level. And before you are ready to pop your champagne, it spoils your mood immediately and strike at midnight with a 12% plunge down.
Those who did not take profits and maybe caught it at high price of 11500 and above are in the red now. And those who got in at say, 10,000 price level are faced with 2 options -
1. To cash out now for fear of another 12% or worse situation
2 To hold and pray that it continues to go up
It is human nature to want the best of everything for the least amount of effort like winning a lottery. Imagine exchange $1 for $1,000,000 , who doesn't want that? And it is precisely for this reason alone, punters are willing to queue for hours to bet on their chances.
Imagine there are 100,000 people islandwide queuing to buy the lottery tickets at $1 per ticket on that day. And say, on average, they spent $5 on the tickets. And they can buy 7 days a week, that gives us
100,000 X $5 X 7 days = 3,500,000
Of course, my calculations is way too simplistic as there are many products you can buy at the betting shop. So, if one person strikes the lottery at first price of $1,000,000 , after the payout, the Lottery company still earns 2.5m. I am sure this is a conservative figure.
Sadly, I am also seeing more scam advertisments on social media telling punters to buy into their system where they can correctly predict the first prize for you. Does it make sense to you ?
Nevertheless, I am sure there would be a group of people who believes in it and bought it. That is how the world of money operates. If you can find a sufficient group of people who believes in your product/services, then you can make money out of it.
With fractional shares that retail investors can invest these days, one is much better off parting their hard earn money into good quality companies like Apple, Ten cents, etc and see their money grow over time than to regularly visit these betting shops and lose their money away.
Lean on the game of higher probability of winning be it stocks, forex or commodities. It is not easy but it is doable if you put in time,effort and commitment to it.