UNDERSTANDING YOUR RISK PROFILE
We all hate to make a loss and the feeling is worse if you had been duped into a scam. It is vital to recognise that financial losses affect us differently. This can be attributed to our emotional make-up, the resources at hand to make money again and how deep our pockets are and while some are able to withstand great volatility and still sleep well at night, others are risk-averse. If you are risk-averse, it means that even if the investment loss is small, it can be an emotionally draining experience that may impact your health. It is prudent to understand your risk profile. So besides analysing the risk-reward reality and conducting due diligence before any investment, ask yourself : Can I take the volatility, can I afford to invest, and, finally, do I need to invest?