Spreading The Risk

This article finds us looking at a practice that has been applied to many business ventures through out time. There are plenty of scenarios that can be applied to this practice, here are a couple I have come across.
Horse racing systems and there are plenty. Can you make money from any given system? The answer is yes, but there is a catch. To be successful with any one system you would need a massive starting capital, now let’s face it how many people can afford to do this, only a select few. So as with most investors staring out in racing the only real way to win is to make small amounts from different methods, investors call this "spreading your risk" and it works for them and it will work for you as well. I remember well a conversation I had with a gentleman at one of yearling sales and I quote him as saying “It always amazes me why you would spend $500000 to a $1000000 dollars on 1 horse when with that sort of money you can purchase 10 or even maybe 20 horses” His thinking of course was that he had more chances of being successful with his purchases than his counterparts buying just one horse. It stands to reason if that 1 horse worth 1 million dollars was not successful the money is wasted, my friend of course, if one horse did not shape up to his expectations he still had 19 other horses going through the their paces. He always had results and all though I have not had direct contact with him in years I still hear on the grape vine he is doing well with his approach to purchasing and racing horses.
Now the same applies to the investor. To be successful we need to make a profit. It would be all well and good if this was possible from just one source, but as we have out lined it is too much of a risk to have all of your eggs in one basket. Lets concentrate on making small profits from various avenues, to start with go to our web site and review all of the systems and say pick out 2 or 3 that you like, if possible perform a dry run so that you feel confident with them. Now armed with a few different avenues you have more chance of making a profit. Don’t aim to high to start with as long as a profit is made that is all you are looking for to start with. Always invest within your means. Please make sure you read all of our other articles, I am sure that it will give you a fresh and successful approach to gaining a winning edge.