Always have a plan of entry and exit - Risk Control
Hello Community, everyone have a good start to the week, make it very productive.
Today I want to talk about a recent experience, and one that left me with good lessons. Starting from the current reality, in good measure we are all in search of options to produce money from business, to establish different sources of income, with the intention of stabilizing our economy and improve our daily lives, do you agree or is it just me who is walking on that?
In every venture we do we must always keep in mind that just as we can have big or small profits, we can also have losses, because risks are part of everything we do in our lives and business, ventures are no exception.
I recently had an experience that was highly risky, which led me to define certain expectations about what I do and what I will do. The large profit possibilities often lead us to become blind and omit the part of the risks that can lead us to large losses very quickly.
That's why there's more room for the idea that we MUST NOT RISK WHAT WE ARE NOT ABLE TO LOSE.
We must adapt the management of our risk control depending on the business we are doing.
It's not the same to run a traditional business, for example a pharmacy or a bakery, that might be starting with few resources and in general most of the business owners reinvest permanently during the first months or years before they can make any kind of profit, in theory because those businesses have a certain degree of stability in the traditional economy. But when we talk about crypto-currencies, digital investments, the best thing to do is to establish a technique, a scheme that we work on and not get out of it, because it can lead to sudden losses.
Risk control is a phrase that I am keeping more and more in mind as I get into investments in the world of cryptomonics, given that volatility is very high and can be earned very quickly, but can also be lost in the same way.
Having exit strategies is as important as having entry strategies
In any part of the world, in any commercial activity in which we are involved, we must think and rethink what we will do. To have entry and exit strategies, I do not only refer to the trading of cryptosystems, but to any activity.
To see our life as far as money management is concerned as a big chess board, -I hope you all have played and know what I mean-, in which we have to be very STRATEGIC, to try to foresee what can come if we make one move or another, but we know we can't always get it right, however it's worth trying.
I'll say goodbye for now, hoping you enjoyed this reading.
I'd like to know: **Have you ventured into high-risk businesses? How do you handle them or would you rather stay out of them?
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