Taking calculated RISKS or simply being RECKLESS
I have often wondered why cars are manufactured to reach a certain top-speed if the driver thereof will never “legally” be permitted to take advantage of this facility. Strict compliances are imposed on drivers to keep to the general speed limits when driving on a freeway and when using a public road. These restrictions are there to keep drivers, their passengers as well as other road users safe and potentially accident free. However, I believe that everyone reading this have come across a sportscar or two passing you on the freeway and by the looks of it, your car, who was already travelling at the maximum allowed speed limit, could just as well have been standing still at the speed you were being passed.
A close friend of mine once asked the question “Is it because some business owners are more street-smart that they are not afraid to take risks within their Businesses?” My answer to this was that there is a big difference between taking a calculated risk and being reckless.
The Merriam Webster Dictionary defines the word reckless as “marked by lack of proper caution: careless of consequences.”
Cambridge Dictionary describes risks as “the possibility of something bad happening”
From the above it is clear that risks may be calculated, thought through and a decision is made by weighing up the pro’s- and cons, doing your research and you decide on what is the best option for you or your organization. Outcomes are not always guaranteed. But getting to your decision and the reasons for executing them may be a teachable measurement when making future decisions. You will have a point of reference on what worked for you, what did not, and how you can improve when implementing future choices.
If you go about life in a reckless manner, not caring about the consequences of your decisions and feel that the adrenaline rush is what makes you tick, you might lose more than just your financial stability, your reputation or business. Your decisions might be fatal.
Even Government needs to take calculated risks. During the South African President’s speech Sunday, the 28th of November 2021, President Cyril Ramaphosa, indicated that discussions were held and that reaching a decision to keep South-Africa on alert level 1 was not made individually but by obtaining the valued guidance of the National Coronavirus Command Council, President’s Coordinating Council and Cabinet. Decisions imposed are also seen as a calculated risk, advising the nation to follow strict covid-protocols and to get themselves vaccinated. I mention that this is a calculated risk because in their discussions they clearly had to weigh up:
- how the economy will be affected
- business’ that will not survive another lockdown
- the effect on the current employment statuses
- spread of the virus, etc.
Diversit-e Smart Trade College is an educational Company that teaches our clients to minimize their risks and to maximize their profits by making informed decisions on their self-managed trading accounts.
We do not conduct business in a reckless manner, nor do we encourage any of our clients to be reckless when they start trading their hard-earned money on the financial markets.
Our dedicated team are constantly seeking new ways to ensure that the courses, lectures, one-on-one coaching, online- and at campus classes are easy to understand and consumer friendly. We cater for the novice as well as the client who already have some trading experience. The 36-months online self-paced learning course is structured to cover the following learning styles:
- Knowledge-based
- Activity-based
- Competency-based
In a trading environment we understand that clients will need to act on their decisions. You may have heard the saying “You do not marry or divorce a share”. There are numerous factors that may influence a client’s decision to enter or exit a trade, for example: experience, emotions, knowledge, level of risk, etc.
At Diversit-e Smart Trade College we do not have control over a client’s emotional state of mind. There will always be traders who do not have their risk management plan in place or stay in a trade even though the world is experiencing changes. A client may need to exit a trade for them to control their losses.
Profitable trading includes risk management. Luckily, with the training on risk management in the curriculum, we can guide our clients ensuring they make informed trading decisions.
When you are passed by a car, driving at an unimaginable speed, sit back and know that their apparent “reckless” driving may cause them more harm in the long run. Ensure that you make decisions which keep you, your loved ones, and your hard-earned money safe.
When dealing with the financial markets, ensure you are doing business with a non-reckless Company, like Diversit-e Smart Trade College, who has proven social credibility and commits to provide the best educational material to help you reach your personal goals and objectives.
