Is Investing really risky?

Is it really true that investing is risky? The answer is... itdepends.
The risk in an activity very much depends on the level ofcompetence of the person doing that activity. For example, is it risky to drive a car? Well, if you have never gone for any driving lessons and have no idea how to read road signs, engage the gears or to use yourside-view mirrors, then there is a high chance that you could getyourself badly hurt or even killed.

However, if you have a thorough understanding of how to drive well,then driving is a low risk activity.Similarly, investing is risky when you don't know what you aredoing. The scary thing is that the majority of people who investtheir hard earned money in the stock market do not know what theyare doing. Many people who buy shares of companies have little or no knowledgeof how to invest. They are like that driver who has no clue abouthow to work the gears or the rules of the road. This is because you do not need to take a license or be qualified to be an investor.Just about anybody can do it!Most amateur investors do not even have a basic understanding ofthe economic cycle and how interest rates and oil prices affect theglobal economy & the stock market. They have no clue as to where and how to read financial reportsthat will impact the stock markets. Most have very little financial& accounting knowledge and do not know how to value the worth ofthe company's shares they are buying. In fact, I am often shocked when I hear of people who invest in acompany without even understanding what business the company isinvolved in, let alone understand the company's business strategy. In the highway of investing, over 70% of investors (mostly thegeneral public) are driving around without the basic skills ofmotoring! This is why many of them crash and burn their hard earned money.
For the majority of people out there with little financial competence, investing is truly high risk and maybe high return(depends a lot on blind luck). To me these people are not investorsbut gamblers. For such people, I would strongly advise them to learn how to driveor to leave their money in the bank or under their pillow!When you have a thorough understanding of the stock market & therules of investing, then investing is no longer risky! When youknow exactly what you are doing, you can achieve extremely highreturns, with very low risk!

To Your investing
success