Monday, September 15, 2008

If you take the risk, you get expected return only

If you take the risk, you get expected return

Every security market investor, trader and intermediary should know this statement.

Don't jump in your seats if somebody says I have taken the risk and I made the money.

There were many who took the same risk and were in dumps. This is the man who became successful and exhorts everybody else to take the risk.

Unless you can manage the possible loss (loss will never be expected in a risky venture only profit is expected) don't take the risk.

The mighty investment banks like Merrill Lynch and Bear Stearns have lost their independent status.

Lehman filed for bankruptcy. Many hedge funds are folding up. Let people understand risk taking properly.

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