Why High Risk Lead To High Gain?

Are you willing to Take Risk?

There are many myths and facts about investing. Some pseudo facts are that, high return investments are risky and low risk investments are safe. The truth is, there isn't any exact curve that'll give risks as a function of return. Low return investments can be very risky too when fraud happens, for example.

However, the pseudo fact that risk correlates with return have some truth in it. You need to understand what causes it.

Money doesn't make money. People make money. Someone else will have to work on that money so the money can produce more money. Let's call those people workers. Workers here include CEOs, Entrepreneurs, all the way to blue collar workers. Those workers organize various resources, including your money and themselves to maximize their yield.

How much each worker gets depend on supply and demand. Currently, due to centuries of prosecution and genocide, people that are risk taking enough to be entrepreneurs, or love to learn enough to be CEOs are under represented in the gene pool.

The market values the rare. So entrepreneurs and CEOs tend to get paid way higher salary than blue collar workers, which are often investors. The commies, realizing that, switches side by supporting the interests of capital owners against workers' interest by demanding lower CEOs salary.

Here, investors are those who just put their money and do nothing else for the business. If you invest in your business then you are both investors and workers. Your return as an investor is the amount of profit that the workers are willing to share you. For simplicity sake, let's just say that the business is already established with constant revenue.

Say the business earns $100,000.00 a year. Now, the total assets of the business might only be worth $100,000.00. So in a sense, the workers in that business just get 100% ROI per year right? However, even though the total assets of the business are only $100,000.00, the business isn't worth $100,000.00. Any business that yields $100,000.00 per year must be worth $500,000.00 at least.

Here's the catch. Why in the earth are workers willing to sell their businesses to you for a mere $100,000.00? Just like workers have market value, money's salary has market value too. We call it interest rate. The workers know that it's good enough for you to get 20% ROI per year.

Hence, he's not going to sell the business to you for $100,000.00. He's going to sell the business to you for $500,000.00. If you pay $100,000.00 he'll only agree to give you 20% of his business. You see. In a sense, business ventures do not follow the pseudo fact mantra of "High risk high gain low risk low gain". The risk and the gain depend on the skills of the entrepreneurs and not on those curves.

However, when offers come to potential investors, that mantra is used by workers to decide the ROI they feel the investor deserves. If the entrepreneurs realize that they their business is quite safe, he'll simply give investors low ROI. And that's how the low risk low gain high risk high gain mantra becomes a reality in the point of view of investors.

Exceptions to the Norm

If a woman works as a stripper, and gets paid, what's her ROI? Given that she's working on a job that absolutely needs no capital and she gets some money then the ROI is infinite right? I would disagree. You need to take into account her beauty, her boobs size, her sexiness, and her young age as assets too. We can think of the value of the assets as how much we're willing to pay her as a slave. In that case, the ROI is not really infinite. I think it's not much higher than typical ROI. You'll see more of it when discussing ones' worth.

Ones' own business can be thought of as an investment. You can buy a product for $10,000 and sell it for $16,000 and get 60% return within a month for example. Is it risky? No. many people do it every month. However, in a sense, it's not really an investment. If it is, we would have been a billionaire by just keeping on reinvesting. It's business. It's investment that we have to work for. In a sense, the real ROI is not really 60% per month because the business it self has a market value. Just to let you know that with some work, you can indeed get 60% return on some of your money.

However, you got to work on that money rather than just fire and forget. Hence, it's not an investment. It's more of a job like that of a stripper.

Savvy businessmen get huge return and do no work. In that sense, you simply need to recompute the real value of his business. So in a sense, that's not investments either because he can't simply enlarge his earning by infusing more money. The market value of his business is so huge. If you take into account the fair market value of his business as capital and profit as interest, you can get the ROI by dividing the profit with the fair market value. In that case, the ROI will usually drop to the standard amount again.

And then there are risks that's inherent not in the investment but in you. For example, investing offshore tends to be less risky than investing in your own country. Why? Well, you'll never know when the next time you bump into some frivolous lawsuits, or have some religious fanatic committing sweeping against your shops. The places where you live are the places you often end up fighting others. We'll talk about it more when we talk about offshore investing.

Some investing is quite bad. Putting money in the bank can often yield so little return that the return is actually less than the inflation rate. That means you actually lost money every year. In a sense that's risky too because you're guaranteed to lose your money every year. How's that for low risk low yield. However, people do put their money in the bank for the liquidity and to balance the risks on other investments.

Manipulating Yield and Risk

Risk and yield can be manipulated. For the same yield, investors can get less risk by diversifying his money. However, the process is cumbersome. Such processes turn investing into another business again. For the same risk, or for a very low risk, investor can increase yield by leveraging his money with borrowed money. This is usually done in real estate industry. Banks realized that land value are quite stable and hence are usually willing to lend money to land banking industry than most others.

By Credit Plus Health

Ingrown Hairs

What is an ingrown hair?

An ingrown hair is a hair that curls and penetrates the skin with its tip, causing inflammation. Ingrown hairs are more common among people with very curly hair. Most ingrown hairs occur in the beard area.

What are the symptoms of an ingrown hair?

The most common symptom of an ingrown hair is inflammation of the skin, followed by pus formation. However, each individual may experience symptoms differently. The symptoms of an ingrown hair may resemble other skin conditions. Always consult your physician for a diagnosis.

How is an ingrown hair diagnosed?

Diagnosis of an ingrown hair can be confirmed with a medical history and a physical examination.

Treatment for an ingrown hair:

An ingrown hair often heals on its own. However, in the case of chronic ingrown hairs, treatment may include:

allow the hair to grow longer
depilatory (to remove the hair)
electrolysis (to remove the hair)

By Health Fitness InfoCentre

Your MIND and Its SUPER-Powers Hidden Within

All About The Super Power Mind

The human mind is an Infinite wonder. It has the power to transmute your Inner desires into their physical counterparts once focused. What the mind can conceive, You can achieve, just as long as you have the inner Belief and Will Power to back it. For example, take the case of where cancer patients were given 'Placebo Pills'.

These pills were just plain old pills that have absolutely NO healing capabilities what-so-ever.So what, how did they get well? The healing power came from their thoughts. They were told that these pills contained the highest amounts of cancer-fighting ingredients which can effectively cure them in just a matter of months. So the point here is, they naturally assumed in their mind that if they took this pill it would make them better and that their health will be restored.

Do you see how powerful your mind can be?

They simply registered it in their minds that these pills would cure them of their illnesses and in the process, the belief embedded within their subconscious mind became a reality. This is just one example of the SUPER-Powers hidden within your mind. So... now that I have your attention your probably asking yourself this question, "How can I use my mind to achieve my dreams?Well, one of the most effective ways is to use the "as if" principle. And what I mean by that is, act "as if" YOU are the person you want to be. Act "as if" You are already possess whatever it is you have longed for. Simply put, Think, Act and Feel like you've already accomplished what you have dreamed about all your life. This principle is a very Powerful principle if you simply believe. And you'll be much closer to your goal if you're constantly intact with your objective(s).

It's okay to be obsessed with your dreams.

It doesn't mean that if you want to be Superman you'll be able to fly out of a window and into outer space. That would be Crazy! I'm simply saying, "Do what needs to be done". Take ACTION on your dreams.

Let your visions Encourage and Motivate you.

The problem with people in todays world is that they are too pre-occupied with Worries, Anxieties and Negative Emotions. As a resultof this, people are adversely affecting their state of health. White lies unfortunately have become prevalent nowadays in order to ease the burdens or to persuade others to do things that they thought are unattainable.

A famous person once said, "Whenever you think you can or you can't, you're right!"

If you think you are poor, then you are; unless you properly condition your thoughts to a 'Positive Mindset'. I know it's hard to think "Rich" if your environment is not conducive to such way of thinking. Use your imagination and 'Visualize' in your head that your house is a mansion and your old car is a Porsche,...

Well, I think you get the picture.

There is absolutely NO limit to what the mind can achieve but You have to combine Belief, Will Power, and ACTION with positive thinking in order to achieve your inner desires.

By Credit Plus Health

Stress In The Workplace

Manage Your Stress

According to the Australian Council of Trade Unions’ (A.C.T.U.) 1997 survey, fifty per cent of workers had suffered some form of stress at work in a 12-month period. The statistics in care professions were even higher, with the Department of Education and Training in Western Australia reporting in its 2002 Attitudes To Teaching Survey that seventy per cent of teachers identified workplace stress as a cause for concern in their teaching positions.

Stress in the workplace is becoming a major concern for employers, managers and government agencies, owing to the Occupational Health and Safety legislations requiring employers to practice ‘duty of care’ by providing employees with safe working environments which also cover the psychological wellbeing of their staff.

One of the costs, for employers, of work place stress is absenteeism, with the A.C.T.U. reporting that owing to stress, nearly fifty per cent of employees surveyed had taken time off work. Other negative effects were reductions in productivity, reduced profits, accidents, high rates of sickness, increased workers’ compensation claims and high staff turnover, requiring recruiting and training of replacement staff.

While a certain amount of stress is needed to motivate individuals into action, prolonged stress can have a huge impact on overall health. More than two-thirds of visits to doctors’ surgeries are for stress-related illnesses. Stress has been linked to headaches, backaches, insomnia, anger, cramps, elevated blood pressure, chronic fatigue syndrome, fibromyalgia and lowered resistance to infection. For women, stress is a key factor in hormonal imbalances resulting in menstrual irregularities, PMS, fibroids, endometriosis and fertility problems. Stress can also be a factor in the development of almost all disease states including cancer and heart disease.

Each profession has its own unique factors that may cause stress; below are some causes of stress that cross many professions:

· Increased workload
· Organizational changes
· Lack of recognition
· High demands
· Lack of support
· Personal and family issues
· Poor work organization
· Lack of training
· Long or difficult hours
· Inadequate staff numbers and resources
· Poor management communication
· Lack of control or input

So what can be done to effectively manage workplace stress?

Organizations can:

· Educate their employees to recognise the signs of stress.
· Where possible, give their employees the chance to be involved in decisions and actions that affect their jobs.
· Improve employer-employee communications.
· Provide employees with opportunities to socialise together.
· Be understanding of employees’ personal and family responsibilities.
· Ensure employee workloads suit their capabilities and resources (provide more training and resources if not).
· Provide support (internally or externally) for employees who have complex stress issues.
Employees can reduce their overall stress by:
· Regularly exercising, as this releases ‘happy hormones’.
· Eating a healthy diet, as stress depletes vital nutrients.
· Getting adequate rest.
· Using tea and lunch breaks to read, listen to a relaxation CD or have a five-minute power-nap.
· If appropriate, playing relaxing music at work and burning aromatherapy oils.
· Being more organized. Get up earlier to have more time.
· Delegating responsibility where possible. Say no!
· Taking time out to laugh by telling someone a joke. Start a laughter group: by standing in a circle and all forcing a big laugh, it will soon become real!
· Avoiding caffeine and sugar. Although this may provide an instant lift it later depletes the body of energy and nutrients.
· Taking time to do things that bring enjoyment and pleasure.
· Making the work environment pleasurable. Have relaxing sounds in the form of music or a water fountain. Have enjoyable smells by burning candles or aromatherapy oils. Hang beautiful pictures or posters on the walls; have photos or flowers on the desk.
· Taking care of their overall health and wellbeing by practising good self-care.
· Keep a journal that monitors dates and times of stress to detect re-occurring patterns and to help you discover changes you may need to make.

Sometimes trying to implement change (even for the better) can itself cause stress and prevent a person remaining motivated. In this case it’s important to get support for your stress from a counsellor, doctor, naturopath, friend, peer or life coach who specializes in stress issues.

The benefits of a systematic and joint approach to reducing work stress are:

· Increased productivity
· Decrease in absenteeism
· Improved morale
· Decrease in workers’ compensation claims
· Reduction in workplace accidents

The most important benefit in reducing workplace stress is that it will promote a pleasant work environment for all.

By Credit Plus Health