by Frederick Mann
(Excerpt from WealthBooster Magazine -- Issue #241 -- July 21, 2004)
The first thing is to know your risk. If you put money into a program, you risk losing it. No matter how good a program is, there's always a risk that it will fail and all the money you have in it will be lost.
If you have money in any online currency, such as e-gold, e-Bullion, IntGold, Evocash, etc., there's a risk that your account(s) will be raided and emptied. There's a risk that the currency itself will fail and all your holdings will be lost -- this happened with OSGold. There's also a risk that your account(s) will be frozen for arbitrary reasons.
If you have money in fiat currencies, such as the US$, there's a risk that the currency will fail and all your holdings will be lost. (During the past 200 years, the US$ has lost about 97% of its value. The ongoing devaluation could accelerate at any time.)
The second thing is to take responsibility for your actions. If you put money into any program, it's your responsibility and nobody else's. You should never put more money into any program than you can afford to lose. Blaming others for your losses relinquishes control and is the hallmark of a loser.
One way to manage risk is to start small with any particular program, and gradually increase your holdings as you gain confidence in the program.
It's very important to recover the money you put into any particular program as soon as it's practical to do so.
Diversification is most important. Don't put all your eggs in one basket.
For more information on managing risk, see WBM#212: Top 24 Money Win Factors!, Basic Money Skills, and other relevant WBM Issues.
Sponsoring others is another way of reducing risk. It can enable you to recover the money you risked more quickly.
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