Post
Topic
Board Trading Discussion
Re: RISK and REWARD are not always correlated
by
stomachgrowls
on 30/04/2020, 21:03:21 UTC
According to Benjamin Graham, you don't really have to take a higher risk to achieve a higher reward.

Yesterday, I came by an informative video of the summary of the book "The Intelligent Investor" by Benjamin Graham. What intrigued me the most was when it mentioned that risk and reward aren't always correlated which is very different as what most of us had heard "the higher the risk, the higher the reward." With this new perspective, I have been given a new idea that it is not always the case. There is this quote that I came across in the this informative video:

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

It might be better for you to watch the video yourself for you to understand it even better. Here is the link to this informative video. As such, I researched further to understand it even better what does it mean. You might find this article helpful.

What does your take in this? How could you apply it in trading cryptocurrencies? Are there any interesting books, articles or an informative video just like what I have mentioned that you might wish to share?
To become more intelligent and skill, you have to put your enough effort in trade. For all this I would suggest that start with low money to control yourself and become smart. By Benjamin Graham theory I don't feel that big risk has in BTC. For high profits you have to expert to select some altcoins, there is the high risk and high profits.
Comparing between BTC and altcoin profitability then theres no doubt that alts do have it but in terms of long term aspect then you can somehow trust btc among the rest.

Yeah its true that you can really gain up knowledge and skill if you do experience things because you cant make yourself to be like that if you dont engage up into things.

Risk and reward ratio is indeed known and common since we know that the bigger the risk the higher the reward but that line been said on op does really have a point
but in just some aspects and not happen most of the time.