Financial Loss & Grief

Nobody goes into an investment hoping they lose money, I have never seen or heard of any investment that is without risk, one way or the other, risk is always attached to it. The most risk free investment in crypto, a StableCoin, got rekt and a lot of people who invested in it lost money. This got me thinking, they can never be a risk free investment in this world. Even if the investment claims to be a low risk investment, as long as risk is still involve, the investment is risky. When ever I hear low risk, I can’t help but think about this illustration using candies

A low risk investment is still a risky investment because it’s like , having 100 skittles and being told that 1 out of those 100 skittles when taken can kill you. That’s 1% risk, it has a 1% risk doesn’t mean that if you take the 1 poisonous skittles you won’t die. So it’s left for you to take that risk of eating all 99 skittles hoping you don’t eat the 1 poisonous skittles. You can choose to not eat any of the skittles at all, because you don’t want to gamble your life with that 1% poisonous skittle. But if you don’t eat of any of the skittles you won’t feel the flavor, you won’t get the feeling of eating a skittle.

This is what it means making an investment with low risk, now relate that with higher risks let’s say like 10% and above, this time you aware of the risk and you are hoping you don’t eat any of the poisonous skittles. If you eat any poisonous skittle and it kills you, that’s the risk you were ready to take at that moment. The irony of low risk and high risk investment using the skittles illustration is that, most times, no matter how many percentage risk was involved in the investment, the low risk and high risk investors end up with the same predicament. For instance, UST investors invested on UST, because its supposed to be a low risk investment compared to LUNA. But unfortunately UST investors lost money just like LUNA investors did, might not be as much as the LUNA investors, but they all lost money.

Back to reality on investments, what happens after the loss has happened? What do you do? Is that the end of the world? For some people, yeah, they consider suicide, they think suicide is an escape route from what they are feeling. Losing money messes you mentally, I have been there couple of times and that’s why I will always understand what investors go through when they lose money. It doesn’t matter the amount they loss, for instance, some people might think that investors who lost a couple of thousands shouldn’t be as sad as investors who lost couple of hundreds of thousands or millions of dollars.

When investor losses money in an investment, their hope being taken away from them. Their source of income is also taken away from them, their sacrifices is being taken away from them, their dream and worth is also taken away from them. Most importantly, their safety net is being taken away from them. Some of them, that investment might be their last hope, so losing it is not an option for them.

When people complain about losing money, some people are quick to judge, they end up saying things like “why did you invest”. Well, it’s either I invest or spend the money on unnecessary things I might not be able to account for after spending. This is why I always invest, but I try to spend, because we are humans, we need money for other things outside investment.

An investor visited Do Kwon home, turns out the investor had over $2 Million invested in LUNA. Things like this can mess you up mentally, it’s easy for people to suggest moving on when things like this happen, it’s always easier said than done. LUNA/UST is an eye opener for crypto investors to be more careful with their investments.

The grief is part of the process needed to be experienced after a financial loss, absorbing it and embracing it is essential but dwelling in it for a long time is not wise. When you are down, take a rest and get back up. You are human, getting motivation to keep moving is not easy, but it’s essential for growth. No one cares about your losses, they are only focused on your wins.

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