Quotes About Risk

When uncertainty is low, adaptive approaches run the risk of higher costs. When uncertainty is high, optimizing approaches run the risk of settling too early on a particular solution and stifling innovation.

Little ol' boy in the Panhandle told me the other day you can still make a small fortune in agriculture. Problem is, you got to start with a large one.

Even if your company is experiencing good times now, the business will eventually be at risk if the leadership culture is not strong or aligned.

Drugs are a bet with the mind

It's like gambling somehow. You go out for a night of drinking and you don't know where your going to end up the next day. It could work out good or it could be disastrous. It's like the throw of the dice.

Drugs are a bet with your mind.

Australian Rules football might best be described as a game devised for padded cells, played in the open air.

Man is extremely uncomfortable with uncertainty. To deal with his discomfort, man tends to create a false sense of security by substituting certainty for uncertainty. It becomes the herd instinct.

Management guru Peter Drucker calls it "risk which is coincident with the commitment of present resources to future expectations.

trading is not about discovering a great strategy for making money but rather a matter of learning how to lose.

One investor's two rules of investing: Never lose money. Never forget rule #1. (Warren Buffett)

The majority of unskilled investors stubbornly hold onto their losses when the losses are small and reasonable. They could get out cheaply, but being emotionally involved and human, they keep waiting and hoping until their loss gets much bigger and costs them dearly.20 (William O'Neil)

in the words of the father of contrary thinking, Humphrey Neil, "The crowd is most enthusiastic and optimistic when it should be cautious and prudent, and it is most fearful when it should be bold."7 On

The gambler isn't playing a game; he is just playing.

A DANGEROUS COMBINATION As the epigraph to this chapter indicates, most people don't know whether they are engaging in inherent- or created-risk activities. Couple this with people's failure to distinguish between the two types of loss-producing events, continuous and discrete, introduced at the end of the last chapter, and you have a disaster waiting to happen.

In betting and gambling games if you stop acting and do nothing, the losses will stop. But when investing, trading, or speculating, if you're losing and stop acting, the losses don't stop; they can continue to grow almost indefinitely.

then speculating, and therefore having a plan, is the only way to deal with the uncertainty of the future in the markets. Given this definition, for the remainder of the book Speculator (capitalized) will be used to include investors, speculators, and traders, all of whom are Speculating.

In order to be speculating, by definition you must have a plan.

Betting and gambling are suitable for discrete events but not for continuous processes. If you introduce the behavioral characteristics of betting or gambling into a continuous process, you are leaving yourself open to enormous losses.

But when investing, trading, or speculating, if you're losing and stop acting, the losses don't stop; they can continue to grow almost indefinitely.

Speculating (and this includes investing and trading) is the only human endeavor in which what feels good is the right thing to do.

On the other hand, a discrete event (e.g., a football game, roulette, blackjack, or other casino game) has a defined ending point, which is characteristic of external losses.

In a continuous process, the participant gets to continuously make and remake decisions that can affect how much money he makes or loses. On the other hand, a discrete event (e.g., a football game, roulette, blackjack, or other casino game) has a defined ending point, which is characteristic of external losses.

One of the oldest rules of trading is: If a market is hit with very bullish news and instead of going up, the market goes down, get out if you're long. An unexpected and opposite reaction means there is something seriously wrong with the position.