Proportional to risk and income

The simple reader hopes to find the Midas touch of the book, like the thousands of-year-old Chinese people who hope their emperor is Myungeun, officials are honest and upright. They try to understand the author's terminology and study the author's analysis. But the gap between the desire and the reality, often like the back of the beauty left to your reverie and the positive left your impression of the gap as large. When they finished reading a book, still can not be in the stock market, the heart is complaining about their own not fine, or decided to find another brilliant. Will they have a bigger question in their heart, is it possible to have this wonderful wish? Indulge in the illusion of hope is good, from the high place to fall from the illusion of the reality of the ground is painful, more painful things to climb up again again into the fantasy and then fall again and again.
Open the Internet, search "rich", a lot of small investment, quick, low-risk projects will let you dizzying. However, many people, including shareholders, will be dismissive of these. "There's such a good thing in the world, and it's a lot less risky to make money." "There is no free lunch in the world." "In saying these words, they are calmly speaking a simple truth, in the investment world, the risk and income are proportional." If you choose an unusual rate of return, you will be able to take on an unusual risk. It is also easy to explain the truth. In real-life investment options, if there is a high rate of return, and the risk does not increase proportionally, then all investors will flock to it. Conversely, if the return on an investment is lower than the other, and the risk is not correspondingly low, then no one will be chosen to disappear in the market. Such a man-made competition mechanism makes all kinds of investments have a basically consistent rate of return and risk ratio. On the other hand, the investment opportunity itself is also scarce resources, also need to bid the reality, in the first case, the investor's pursuit will make the price of the investment opportunity to rise, thus reducing its yield, so that its return and risk ratio back to other investment opportunities consistent with the "normal" level. This makes it possible for someone to recommend a magical, attractive, high-yielding, low-risk earning opportunity that we can confidently distrust, ignore or even more doubtful about his purpose and integrity. This also brings a corollary, although it seems that some of the "Heart of the villain" color, that is the recommended magical investment opportunity is untrue, because if it does exist, why not the recommender to invest, but also spend so much time to promote. A keen reader may associate or think of a variety of individuals and institutions that recommend stocks on the market. The truth of the above also applies to them. The stock market derived from these occupations, but also a very interesting topic, I will be specifically said later.

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Proportional to risk and income