Getting Back all the Money, Risk vs Returns in Mathematics
With this latest payout from the FOREX HYIP, I have already taken back all my money in USD terms (more than USD1300) although in SGD terms I still have to get one more payout to have taken back my investment (due to the IB's spread of 1.6 vs 1.4 currently for the USD/SGD pair). For something I started 8 months ago, this is pretty solid returns.
In statistics, we study probability and understand the concept of mathematical equivalence. We understand the concept that a 100% chance of getting $10 is the same as a 50% chance of getting $20, mathematically. However, in the real world, any sane person will take the 100% chance of $10. As such, in the real world, probability in itself has a value, and all games of chance (investments are also games of chance, as are businesses we run, except that the latter we believe we can influence somehow with our steering of the business) add that value to the investment.
Because of this value of probability, all investments share one common trend, which all investors have to take note all - risk vs rewards. There is a correspondence between risk and between reward. People buy lotteries despite the much worse than 1:1 odds (an investment of $1 on a 45-number lottery for a 2 million prize is at best a 1:2932.2216 odds) because the amount of risk they take is extremely low for the perceived reward. People run away from investment schemes that require an investment of several to hundreds of thousands in dollars for an uncertain return (perhaps 1:10 odds of several millions), because of the amount of risk they take if they lose that amount of money, in return for the perceived reward.
There is a reason why the rich gets richer, and the poor gets poorer. The rich simply can afford to take risks that the poor cannot take.
For more information on the FOREX investment I am taking on now, feel free to Contact Sensei Michael!
In statistics, we study probability and understand the concept of mathematical equivalence. We understand the concept that a 100% chance of getting $10 is the same as a 50% chance of getting $20, mathematically. However, in the real world, any sane person will take the 100% chance of $10. As such, in the real world, probability in itself has a value, and all games of chance (investments are also games of chance, as are businesses we run, except that the latter we believe we can influence somehow with our steering of the business) add that value to the investment.
Because of this value of probability, all investments share one common trend, which all investors have to take note all - risk vs rewards. There is a correspondence between risk and between reward. People buy lotteries despite the much worse than 1:1 odds (an investment of $1 on a 45-number lottery for a 2 million prize is at best a 1:2932.2216 odds) because the amount of risk they take is extremely low for the perceived reward. People run away from investment schemes that require an investment of several to hundreds of thousands in dollars for an uncertain return (perhaps 1:10 odds of several millions), because of the amount of risk they take if they lose that amount of money, in return for the perceived reward.
There is a reason why the rich gets richer, and the poor gets poorer. The rich simply can afford to take risks that the poor cannot take.
For more information on the FOREX investment I am taking on now, feel free to Contact Sensei Michael!
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