Thoughts on Investing

There are two common reactions you'll get whenever people hear you say the word "investing". They will say it is too risky. Even if they have not tried it or know very little about investing, their brain is locked into believing that there is only danger ahead. Their attitude is very skeptic and is not very good at dealing with circumstances outside their comfort zone.

And then there are the overly optimistic people. They think that once they start investing, they can become rich in a year or less, and they can quit their job for good. They think that investing comes with no effort. 

When you come across these kinds of people, avoid them. These are the people who don't know anything about investing. Most likely, their idea of investing came from other people who know very little themselves of the matter. 

Investing is risky, but it can be managed. The key is to never buy anything that you are not  comfortable with owning for ten years. Unless you have plenty of money to squander, you should always pay attention to what you buy. Investing becomes riskier when you never exert time and effort in learning what you want to put your money in.

Investing can be rewarding, but you can rarely rely on it to sustain you on a consistent basis. There are a lot of things that affect market conditions, things that are naturally not beyond our control. Again, unless you have a lot of excess cash to live throughout your lifetime, it is advisable to have a main source of income other than your investments. 

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