Let’s talk about taking risks in life.
There are 3 different types of people in the world when it comes to taking risks.
Type one: people that are risk averse.
Just the thought of taking any risks, makes them 'uncomfortable.’ "I don't want to do it." They like to play it safe.
Type two: people that are risk tolerant.
Meaning that they can tolerate taking risks, it’s okay to take risks every now and then, and they are quite comfortable with it.
Type three: people that are risk seekers.
They're actively seeking out risks and are the ones that are often doing crazy stunts or just on the kick for risk and adrenaline.
I'm not as crazy as a risk seeker. I want to say that I'm risk tolerant, but I wasn't always this way.
I was raised risk averse.
My dad, for example, went to college. After college, he started a job at a steel factory in Germany, Krupp Stahl, and he kept the same job for 35 years until he retired. So you could say
I went on to do the same thing. In the beginning I wen to college, then got a job working for IBM, climbing the corporate ladder.
Eventually, I realized something really important.
Being risk averse and not taking any risks means that if there’s no risk, there’s no reward.
In life, you have to take risks if you want to achieve something extraordinary.
I don’t know any millionaire or billionaire who didn’t take risks at some point in their life.
The important thing is you want to control the risk as much as you can.
In 2002 when I was 33, I left IBM and moved all the way from Germany to Austin, TX to become a full-time trader. Now was that risky? Yeah! Absolutely!
I left a very comfortable 6-figure job to become a trader - something I knew very little about at this point, but I knew I wanted to make a difference in my life.
I didn't want to be a corporate drone anymore, so I decided to take the risk.
beginning it was very challenging, but it did pay out over time.
I mean, these days I’m a multimillionaire and enjoying my life. I no longer have a job.
If you say that I'm "working" tomorrow when showing others how I trade, that's not work, that's fun! I'm doing it because I want to do it. Taking risks is important.
I was trading and at some point and I thought, "You know what? I should probably learn something about real estate investing." And so, I did.
I bought my first house and I made a lot of mistakes, which is important.
When taking risks be prepared to make mistakes, learn from these mistakes, and then avoid them going forward.
Think about it financially. If you don't want to take any risks... if you want to park your money somewhere where it’s safe or just earn an interest rate, how much are you making?
A percent? A percent and a quarter? Maybe even less?
See, when you don't take any risks, there won't be any reward.
On the other hand, is it possible to make money in the stock market? I believe it is. If you want to make 60%, 70%, 80%, then you have to take risks.
What type of risk taker are you?
Are you risk averse? Wanting to play it safe.
Are you risk tolerant? Okay with, and even comfortable taking risks.
Are you a risk seeker? Where you would wrestle with lions, jump from high buildings, skydive and so on?
For me personally, I am risk tolerant and I'm very comfortable. This allowed me to have the lifestyle I’m living now.
- I believe taking risks in life is very important.
- You have to be comfortable taking risks.
- When possible, control the risks as much as you can.
- You won't be able to completely avoid the risk.
If you want to learn more about trading and taking risks, there are plenty of articles here on the blog, as well as videos on my Facebook page and YouTube Channel. Depending where you read or watch, you'll learn more about the way I trade.
If you want us
show you exactly what I do, you can join us at one of our upcoming bootcamps in your city.
Simply go to bootcamp.rockwelltrading.com
At the bootcamp we’ll show you exactly what I trade, when I enter a trade, and also when I exit a trade - with a profit or with a loss. We'll also show you exactly how to limit your risks.
Feel free to share this article with anyone who may find this helpful, and I hope that one day, we meet in person. Go to bootcamp.rockwelltrading.com to see when we're coming to a city near you.