Only Invest What You Can Afford To Lose They Said
This is the most used phrase in the investment world, but I keep asking myself, do people actually invest what they can actually afford to lose? How many of us can afford to lose what’s in our investment portfolio. So I have come to the conclusion and realization that it’s almost impossible to only invest what you can afford to lose.
Life generally is a risk, not making an effort towards achieving a goal is a risk, making an effort is also a risk. When you don’t make an effort you have risked the chances of actually becoming successful and making it big in life. But when you make an effort you have also risked the chances of failing and losing everything you have.
Nobody takes an investment decision with the idea of losing or not being successful. Most people that took investment decisions took a risk and they were very optimistic. I’m very sure that every youth involved in cryptocurrency investment put in 90% or more of their total net worth. Now can they afford to lose that? I guess your answer is No, because if we are being real and sincere people don’t invest what they can afford to lose especially when they believe in what they are putting their money into.
Even if they invested 15%- 20% of their total worth into an investment and it fails, they still feel the effect and trust me, they never invested that amount because they could afford to lose it. They invested it because they wanted to make profit. This just brings back memories of my failed investments in 2019 and 2020. I was so used to “Invest what you can afford to lose”, luckily for me I had invested $3,000 in Ethereum and it yielded $6,500. I had extra $4,500 given to me by my father to further my post graduate studies. So in total I had $11,000. But I know that I needed more money and I wanted my $11,000 to yield more money. So I decided to diversify my investment into various platform to get the maximum profit in the safest ways.
So I diversified my $11,000 into Forex, Agriculture and Real Estates. Now the fact is, on those different places I diversified my $11,000 into, I never imagined or wanted them to fail, but I was on the notion that all investment factors can’t just crash and fail all at once, at least I will have one that will stand and I will use that to start building again. So in a way I was investing what I thought I could afford to lose on those individual investment sectors.
Few months after investing, the forex sector crashed and I lost my money there, I was sad. I got depressed but the thought and feelings that I still had money on other sectors kept me going. Three months later the other sectors crashed and I lost my money there also. Now look at the point am making, we are truly not investing what we can afford to lose when we are investing. People just say that to sound realistic and cautious. Every investment decision seems right until it fails. So the question I have is, how much can you afford to lose when investing?
Posted Using LeoFinance Beta
