What is your Dynamic Risk-Reward Profile?

If by some 6th dimension miracle life-force you came into the knowledge that anything you try within the next 24 hours is guaranteed to succeed, what is it that you would effectively go ahead and succeed at? Let’s maintain practicality and say that whatever it is you would choose to succeed at has to make sense in the world as it exists today, so instead of perhaps saying something like you want to plant a money tree from which you can pick bank notes, you’d rather look at saying something like you want to be wise to an investment which is essentially going to reward you with a consistent stream of income that effectively means you never have to work another day in your life…

Instead of saying something like you want to live forever, staying at a certain age, you would rather say something like you’d want to get in the best shape of your life and remain that way for as long as the effects of time and the natural ageing process allow…

What does that have to do with your risk-to-reward profile?

Before even getting into the connection between what you want to achieve in your life and your risk-reward profile, it’s perhaps pertinent to clarify exactly what that is. What is a risk-to-reward profile?

A risk-reward profile is essentially a kind of blueprint you would implement around the amount of risk you’re willing to get for certain rewards you’d like to attain. So to make a very simple example, if you were in a casino and you were seated at a roulette table, betting all your money on either the blue or red colour effectively means you have a 50/50 chance of either doubling or losing all your money, whereas spreading your chips out more evenly throughout the entire board makes for less of a risk to take, with a decent rewards possibility, but a little bit more patience would probably need to be exercised with the latter approach. A much higher risk is associated with the former, but one could argue that the quick turnaround time of effectively knowing the outcome makes the possibilities around the rewards that much greater.

Now, depending on the unique set of circumstances you find yourself in, there is a certain level of risk you’re willing to take for a certain level of possible rewards. Past a certain risk-profile, you’re not willing to lose whatever it is you stand to lose. That’s what identifying the one thing you really want to achieve in your life does for you. It helps you identify the boundaries and to be real about what you might be willing to do in order to get to where you want to be.

The profile reveals itself to be dynamic the more you analyse it though and as you go about your daily business, you realise that there are some things you can do to match that dynamism. The social security disability attorney Tacoma WA has available to fight your case is probably a much better choice, for example, depending on a few factors, such as where the accident may have taken place and where you actually reside. So your risk-reward profile increases in favour of your rewards, in this particular instance.

The world has a plethora of tools available to help you adapt your risk-reward profile so that you can enjoy a much better chance of actually achieving the set goals you have.