I.5. What is the difference between trading and a bank deposit?

This is perhaps the main question. We showed the percentage difference above, but… there is one thing.

A bank deposit, as a rule, has the lowest degree of risk, limited by the state in Russia at the level of 1,400,000 rubles. This means that if the bank goes bankrupt, the state will pay you up to 1,400,000 rubles from the amount of your deposit. Also note that as the amount increases, the bank interest begins to look more attractive to a number of investors, of whom, however, the absolute majority.

The point here is that the vast majority of people do not expect to lose any part of their money when investing money in growth. If, even despite the higher percentages, such an opportunity exists, then there are fewer people willing to participate in such an enterprise at once.

Entrepreneurs engaged in the production of goods and services understand that such ideal conditions exist only in a fairy tale, because usually when investing money in growth, many factors must be taken into account:

– inflation;

– risk of lack of buyers;

– sharp fluctuations in the prices of components;

– changes in the tax base;

– introduction of new restrictive laws;

– loans, etc.

Yes, this is the price for better living conditions in this world.

It turns out that trading is akin to entrepreneurship, because in trading, the concept of risk occupies a central place in making decisions on making a transaction. What to choose? The most experienced investors recommend keeping the main amount of your capital in a bank, and using a small share of your capital from 2% to 10% for risky operations, depending on your ambitions. In this case, you can effectively manage the risk. Very often, failures in a trader’s career are associated with this particular moment, which is given too little attention.

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