Sunday, April 20, 2008

No Risk No Reward

Did Christopher Columbus discover America by sitting on the couch? No. He took enormous risk by sailing through rough seas with his fellow men. Can we get valuable gold and diamond without miners risking their lives? Without risks, there is no reward. This is true for stock trading as well.

I bought a few Google stocks recently before they announced their 2008 Q1 results. The whole market was pessimistic and were betting that Google will loose. A report from Comscore indicating that the paid ad-clicks decreased in March added fuel to the fire. I took the risk of buying Google stocks at a cheap price. Google gave a pleasant surprise to everyone by reporting a 30% growth for the 2008 Q1 quarter. The stocks increased by about 20% in a single day. Of course, I didn't wait enough to maximize my profit. However, it helped me to make one of my best profits.

No Risk, No Reward. But do not take blind risks. Make calculated risks.

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