The GME phenomenon is not over and it made me reflect on the risk aversion concept.
The term risk-averse describes the investor who chooses the preservation of capital over the potential for a higher-than-average return.
Investopedia
When it comes to risk, I always benchmark:
- Worst-case / best-case scenario: by worst, I mean worst. If things get f****** how will I react?
- Horizon: is there – even a small probability – that I will need the money I am investing (or betting lol) in the next 6/12/18 months?
In my opinion, common sense always wins:
- Plan: you can look at the dollar cost averaging concept for example
- Stick to the plan: buy high sell low is not a smart strategy 😉
- Park emotions
Would you guys agree?
Happy bettin… I mean…Happy investing folks!!
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.