Taking More Aggressive Risks Early

Taking More Aggressive Risks Early

When I look back at how I started my investment journey, I know that I made the best decisions with the knowledge and information I had at that time. I also feel that I was very conscious about my investing patterns which lead to a more conservative portfolio. When you hear about being more aggressive in your younger years, it’s a high risk high reward strategy. The younger you are the higher risk tolerance you may have. Not taking more aggressive risks early is something I regret.

Maybe it was how I was taught about money. I grew up in a household where money wasn’t invested rather saved up. So taking a lot of risk was not in my DNA. For example, in my 401K, I chose more low risk funds for better stability and steady growth long term.

What does high risk mean? Stocks that are seen as high risk see more volatility compared to lower risk stocks. Stocks with more volatility can significantly fluctuate because of economic news, trends, or other  factors. Recently, Nvidia is leading the AI market with their earnings report 486%. The AI market can be impacted from regulations, import/export bans, etc. which feel like a rollercoaster on it’s stock price. 

I’ve always been a buy and hold type of investor. Sometimes this has worked out for me and sometimes not. My investments with Costco, Microsoft, and Apple have had great returns and really worked out with the buy and hold strategy so far. I consider these are higher risk due to dependability on consumer and commercial spending. I have other investments that provide high yield dividends but don’t grow as much. A number of them have actually gone down in value.

What I’m saying is that maybe I should have taken a more high risk approach in my earlier years. Just look at Amazon or Tesla. I don’t know whether taking an aggressive risk approach in my early years would have given me a better financial outcome. If you are looking to take on risk, taking more aggressive risks early will allow you time to rebound in later years if the risk does not pay off. I have since invested in Nvidia thinking that AI is here to stay, maybe not grow as much as we have seen just recently but possibly and buy and hold for now. If you are interested in following my journey and their journey, follow them on Instagram and email subscribe to get alerts of latest posts or follow me on FacebookInstagram, and Pinterest.

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