FEAR AND RISK

Most of the people fail to reach their success because they fail to identified their FEAR.

When we talk about fear means we talk about Risk.We misjudge risk if we feel we have some control over it, even if it's an illusory sense of control. Take example of people who drive rather than fly.

Even though the risks of death are higher driving than flying, many people would rather drive simply because they feel they have more control driving. The facts are that only a few hundred people die a year flying and 44,000 are killed a year driving in the USA . After Sept. 11, 2001, many people took to the roads rather than the skies. Not surprisingly, between October and December 2001, there were a 1,000 more deaths.

Today, many people feel they have more control if they have money in savings. Thus the saying, "Safe as money in the bank." But the fact is that savers are the biggest losers of all.

The point is, in spite of the facts, many people feel safer with money in the bank because they feel they have more control over it. They don't understand about the power of leverage (an ability to make more with less)

The point is that when we're afraid, we tend to ignore the statistics and listen to our emotions. As I mentioned above, you're over 500 times more likely to die in a car than in an airplane. Yet cars are not the biggest of all killers.

Of the 2.5 million deaths annually in the United States, the No. 1 killer is heart disease. In 2003, there were 685,089 deaths due to heart attack. Auto accidents caused 44,000 deaths. Only 17,732 deaths by murder and 1 death by shark attack occurred in the same year.

Despite these statistics, more people are afraid of sharks and murderers than driving up to a fast food restaurant and saying, "Super-size it." French fries kill more people than guns and sharks, yet nobody's afraid of French fries.

The same is true in the investment world. Since many people believe investing is risky, they go for the second-riskiest investment, "SAVING, FIX DEPOSIT, UNIT TRUST etc which are like french fries. They may fill you up, but they aren't good for you in the long run."