The nature of the risk in the Forex

Life is connected with risk

Drinking coffee is a risky business, and leaving your own house’s doors carries hidden dangers. This was demonstrated several weeks ago, when, according to the Washington Post, a man died from his coffee mug. He left the morning paper, stumbled and fell. The mug broke under his weight at the fall, mortally wounding him with his fragments. This story is not meant to increase your attention when drinking coffee, or to demonstrate the danger of walking with drinks. Rather, it is a tragicomic illustration of the fact that our life is connected with risk. And you never know where the danger lies. Life is a game of chance. We risk our lives every day, no matter whether we travel through the ocean expanses or never leave our homes.

Money is no different
Our money is also at constant risk. For a thousand years, while governments and money coexisted, governments stole a lot of money from their citizens in the form of inflation. By constantly increasing the supply of money without an adequate increase in their value, all currencies slowly but surely lose their value over time. If you put your money in the bank, then after a while you will realize that you have lost some of the money due to inflation, and there is a risk to lose everything in case of any problems with the bank.

Risk-free situations do not happen?
Money in the mattress does not make sense, the bank account is not much better. There is no way to protect yourself from erosion without making a choice, and this choice creates a risk. Buying a house? The house can burn to ashes, or the real estate market can collapse. Investing in your own company? If the company fails, then at the same time you lose both your job and your capital. Do you buy securities and hope that they will constantly grow? But what about the periods of recession and economic cataclysms? In any case, any decision of yours carries a risk.

But there is good news – the risk can be turned into profit. That’s why any reforms are fraught with dangers and opportunities. Capitalism does not work according to the principle: first came, first received. He rewards those who have the ability, endurance and intention to find opportunities where others have not seen it; to show diligence and to succeed where others have retreated and failed. Every business person is ultimately involved in the risk assessment business. In the sense of placing capital so that it works, in the hope of its growth. All types of business, in this sense, are the same. The right decisions lead to wealth and success, wrong leads to bankruptcy and redistribution of resources from weak to strong. This is what capitalism is built on

Take the risk to achieve something
It has been said more than once that the degree of risk that we are willing to accept is directly dependent on what we want to achieve. If you want to live boldly, then you must take bold steps. If your goals are scanty and there are not many of them, then they can be achieved easily and with less risk of failing, but with a greater risk of dissatisfaction once you have reached them. It’s sad to see a person who burns with a desire to live, but avoids risk, and lives only half the life. This person feels worse than he who tries and fails or who has never had any desires at all. Mediocrity condemns itself.

Blind risk or calculated
If you are studying risk, then you understand that there are two types of risk – blind risk and calculated risk. The first, blind risk, is a waste of effort and time. Blind risk is the visiting card of laziness, irrational hopes and games with destiny. Blind risk is a meaningless gambling, an emotional decision, a sucker game. A person who takes blind risk, demonstrates all the “wisdom and intelligence” of a drunken footstep while driving.
However, the calculated risk built states, nations and empires. The calculated risk and bold vision go hand in hand. Using your intellect to see the possibilities to solve things in a logical way, and then move forward with strength and confidence – that’s what makes a person higher than an animal. The calculated risk is at the heart of every great achievement and success, starting from time immemorial.

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