When people talk about risk many quickly point to cryptocurrency and forex as the biggest risks anyone can take. However this mid-year August 2025 was a real eye opener. For example my wife invested a lot of time and money in beans this year but when the market crashed the losses were heavy. This shows that even physical investments can be just as risky if not more depending on the circumstances.
Everything that has potential carries risks. This includes every action and step we take.For example, when building a business, we rent a space or building, or something else that will serve as our business premises. The capital we spend to rent or purchase that space also carries the risk of loss. For example, if the business starts and everything doesn't go according to plan, we could experience significant losses. These losses could even be greater than those we incur from stock or crypto trading.
Ultimately, we must first understand the potential and risks we're about to take. We must be prepared for them. We must also have a backup plan for everything. We should only enter when we fully understand what we're about to enter. And that's why we also need to understand risk management.
