Quote from: jems on January 05, 2019, 10:52:06 AM

Quote from: clrpod on January 04, 2019, 09:48:15 PM

Quote from: scanderpot on January 04, 2019, 09:05:20 PM

"If I'm right in the thesis, what do I get?"

"But on the other hand, if I am wrong, what is the maximum I lose?"

With these two bezels on your head, it's easy to size and risk your bet.

The risk is huge and so we must scale very well the amount we have to lose, not to fall into the fallacy of trying to solve life with a single shot.

Only too many people are blinded by their optimism and fail to see the downside. It seems that when it comes to investing people are a lot more naive than in other aspects of life where they're able to think rationally and adapt to risk.

they are increasingly blinded by encouragement from other people who have the same optimism and may be without foundation so most of them only produce a regret. Risk is sometimes forgotten simply because of selfish attitudes to self-confidence that are too high.

You're right, the community largely don't help in that. While a lot of people here are very wise and know and understand how to deal with risk, when times are good you get a lot of people nye on guaranteeing that investing will generate profit and it breeds complacency.