Tuesday, February 20, 2018

Low risk outperforms High Risk.

Since I have exited my cryptocurrencies and have a stake available for trading, I have been spending some time (though not nearly enough) looking into how best to go about employing it for future growth.

As I am not a veteran penny stock trader yet, that route it is a rather high risk endeavor in my eyes, and as the facts I have currently (and rather slowly) been gathering show, it is not something I would put a large sum of money on the line for unless I wanted it to vanish. What has drawn me to trading commodities, namely Orange Juice, for the past 17 years is the fact that they simply don't go to zero. The entire global market place always has and always will have a need for these things. As long as we can grow them, extract them, or produce them, we can sell them and meet the needs of people. There will always be a market of some kind. There will always be value.

Homes can be washed away. Banks can fail. Governments can fail. Companies, and thusly their stock, can become worthless.

I have been searching the Internet for some semblance of an article or post that even remotely expresses the thoughts I have when it comes to approaching the extraction of profit from the commodities market. I am definitely no opponent of Trading commodities, but, the easily observable patterns seem so skewed towards simply "buy and hold" investing it feels like a no brainer, which of course leads to the age old question :Why doesn't everybody do it?".

If you had the money to purchase something that you knew WOULD go up from the price at which you purchased it for a guaranteed profit, would you rather buy it and hold it until that profit was met, or buy it and sell it at a loss?

The obvious answer would be to buy it and hold it until it is in profit right?

While it seems so easy in thought, the reality is we work against ourselves tremendously in the pursuit of profits. The average person doesn't have much to their name, hates their job and is in massive debt-slavery to others  through car loans, credit cards, school loans, medical bills and worst of all, the lack of impulse control. The drive to exit those burdens generates an extreme emotional impulse on it's own, generally blinding us to rational thought in the pursuit of money. We want out as fast as possible so we often leverage all that we have (sometimes more) in the delusional attempt to win big at something. The desperation within us usually keeps us from taking the time to think of safe ways to do things, and even if we do think of those safe ways, we won't accept them because we are too desperate to wait for the fruits of those paths to be born.

Not many people have the chance that I currently have. I am trying to take the time to truly evaluate what to do with this hard earned stake, so that I can take low risk, guaranteed profits that make the most of the time and money available to me.

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