Quote from: joniboini on April 28, 2020, 01:13:10 PM

Quote from: thebutton on April 28, 2020, 09:26:04 AM

On the other hand, we can consider the risk and the reward as independent to the other. The thought that I was trying to convey, the book rather, is that the amount of reward/profit isn't always determined by how much the risk there is which is very unlike to what most of the people had believed.

It would be great if there's a mathematical equation to find where the golden point is. I agree with the idea, but practicing the calculation is difficult. DWYOR and DYOR is like doing a lot of work but you don't know which one is important and should be prioritized, which one is fine if you ignore it.

Most people seems to just throw a bunch of words about risk/reward without necessarily explaining why they do this or that.

You can check the article and the informative video that I had link in the OP about how they compute to determine their point with regard to risks and rewards. If anyone had the time to invest time to read a book or anything related that would help them especially being as a trader then it would be a good example for minimizing the risk while getting a greater reward. Don't you agree?

Quote from: gentlemand on April 28, 2020, 08:06:13 PM

Quote from: thebutton on April 27, 2020, 09:57:10 AM

Quote

"Maximum return is not achieved by taking maximum risk, but rather by exercising maximum intelligence and skill."

If you're taking a maximum risk without maximum intelligence and skill then you're a prize twat.

It seems rather obvious to me that you need to be bold to benefit. Allocating 0.01% of your net worth to Bitcoin is not going to get a maximum return. You need to apply boldness with foresight and care but your returns will only ever be bunch of what ifs if you pussy foot around. Sometimes you have to throw it down and duke it out.

The main thing I don't see when people are taking risks are their escape plans if it's the wrong one. That's what gives you the ability to fight and benefit another day.

The thing is having that mindset that to be bold to benefit isn't really accurate. There are times you need to be bold while there are times that it isn't necessary. People need to work smart. You need to understand your options and analyze if the risk is necessary and if there is a more less risky approach while benefiting you with the same amount of reward and even greater then one should be inclined to choose the latter. The misconception is that people think that reward is always associated with risk but I beg to disagree or rather you can take the words of Benjamin Graham who is also known as the "father of value investing."