My theories on risk and money making

As many of you have probably noticed on my blog, I am extremely risk averse in my picks. Some people have emailed me asking me to be more aggressive in my picks, however I am going to explain why I feel that this is the wrong strategy to pursue.

I have taken numerous risk management classes and have learned quite a bit on how to minimize risk while still creating money making opportunities.

I take an individualist view towards risk: I believe that by minimizing the risk in each individual position, you can earn money quickly, while not exposing yourself to huge losses.

However, if you want to get cash now, and in bulk, then my strategy is not for you. I would never pick a 10:1 underdog and tell you to bet on it. If I felt that an underdog could win, I would hedge my bets by taking the maximum amount of points possible so that my prediction could still be wrong and I would earn 10% on my money.

So far, my picks have averaged around a 20%% return per day. Anybody would kill to make that kind of money on online stock investing or on currency trading. A 5,000 investment could average you 1,000 dollars PER DAY. Considering that refinance interest rates are 5% per YEAR, you can see how my investment strategy succeeds compared to traditional investments. When you consider the time/investment ratio, you can average this 1,000 per day on literally minutes of work. This is a better money/time ratio than one of those mesothelioma lawyers makes if he wins one of those class-action mesothelioma lawsuits. Therefore, even my risk-averse picks will earn you more money than ANY traditional investment strategy with a lower time investment and a significantly lower downside.





I hope this post was helpful and explanatory. And for the followers, know that my picks aren't changing any time soon. I will still try to maximize profit and minimize risk.