Law 39: Risk: Speculation, investment and gambling: Invest but don’t gamble.

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Since you can’t get anywhere without taking any risks (the proverbial ‘nothing ventured nothing gained’), your attitude to risk will determine the amount of money you make. That is, the more you risk the more your financial success and the less risk you take the less wealth you make.

Although you must speculate, you must take only ‘calculated risk’. And like everything else, risk is relative and you must determine your own perception of risk and update it regularly.

On the other hand, any action (such as throwing your life savings into a procedure to resuscitate dinosaurs) which does not fit into an educated, well researched and carefully timed investment is a gamble. A billionaire pumping large amounts of capital into even an innovative business is not gambling but taking a ‘calculated risk’ because that decision is based on their increased attitude to risk.

So not only must Law 25 (which dwelt on wealth strategy and your attitude to risk) be your benchmark but you must also stick to it like a leech. What you must not forget is: only invest money you can afford to lose and never chase money that you have lost.

Your road to wealth begins with speculation and not gambling. Gambling is not based on much forethought while speculation is the result of your careful selection [Law 7]. When you speculate your money, you are investing it to produce a greater return for your long term wealth. And you don’t do so until after discussion with and advice from investors, mentors and successful people, combined with some careful thought [Law 7 again] and some action [Law 29].

Although carefully thought out, speculation is still a guess. So mistakes may crop up and you may lose some money. But that is all part of the game because you cannot get money out if you don’t put any in.

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