2 ms·
You want a risk greater than the reward? That seems like a losing strategy to me. What you want is a reward greater than the risk. Of course, everyone wants t
by jaxn 16y ago
You want a risk greater than the reward? That seems like a losing strategy to me.
What you want is a reward greater than the risk. Of course, everyone wants that. The way to find it is to have some insight into how to make the market more efficient (ex: a new product that solves a pain point), or to find an under-valued asset (ex: a business that is losing money because it is mismanaged).
Of course, municipal bonds also have a reward greater than the risk, but no one gets rich off municipal bonds. So you do want as much risk as you can tolerate, but you want the potential reward to be worth it.
The risk greater than reward scenario is no different than playing the lottery. You may get rich by chance, but on average, you lose.
- Retric 16y agoYea, I was thinking -> not greater than. see: http://news.ycombinator.com/item?id=1612073 http://news.ycombinator.com/item?id=1612073