Originally Posted by
plasmid_boy Good point. I believe some of the rude posters here probably didn't understand the risks involved. When they read your suggestions that based on TA, it will likely go up to xxx, they might have assumed that's going to happen and did not realized that was just a probability thus there is a risk that it could go the other way. So, now they are looking for someone to blame.
But these uncertain or risky circumstances are where you will find the biggest returns (or losses). When I was about 15 years old, I watched the price of a 4-plex went from $250K - $200K - $150 - $100K. The restaurant in that 4-plex made the best burger in town, so I talked to the owner of the shop periodically, who also owns the building. He was going under due to personal issues. I borrowed $40K from my parents and bought the building for $70K. Before lending me the money, they asked "we have no idea about the real estate business, do you?" I responded "I have no idea either, but this will force me to learn it quickly." That was good enough for them to lend me the money without any conditions (if I make money I can repay, but if I loss it, it don't owe them anything). 6 months latter, I used the building to borrow $200K from the bank as down payment for another building. And I kept on moving, still going today. If you think about, it was a huge risk that could have got badly, but...
I paid back to my parents, gave them part ownership, and been paying them $40K/year dividend.
ummm....what's my point here...oh yeah, high risk high rewards and understand the risks. LOL