1. Take sizeable bets in life: Taking small bets will give you a good night's sleep as you have very little to lose, but the important point is "it won't ever make you rich".
(2/n)
Knowledge sharing initiative Book 3: "Zurich Axioms" by Max Gunther
The book crystallizes how to think about taking investment bets (position sizing), and how to reduce risks in investing & speculation. It focuses on teaching a balance between rewards & risks.
(1/n)
1. Take sizeable bets in life: Taking small bets will give you a good night's sleep as you have very little to lose, but the important point is "it won't ever make you rich".
(2/n)
3. Don't diversify too much as gains & losses will nullify each other.
(3/n)
(4/n)
(5/n)
a) Fear of regret what is value recovers - after some time it actually may but very rarely in a short span of time
b) Painful to take losses & most importantly accepting that you were wrong
(6/n)
(7/n)
9. Humans seek patterns even in things full-on randomness - it's difficult to accept a lot of things happen due to luck.
(8/n)
(9/n)
12. Optimism Vs Confidence - optimism means expecting the best but confidence means the ability to manage the worst - always seek confidence - optimism a lot of time is just hope
(10/n)
14. Being against the crowd can cause anxiety especially in investing as your predictions are based on unreliable future.
(11/n)
16. Don't average down when something is falling just to lower your cost - ask yourself if you were to be a fresh buyer would you have bought it now at current rates & if the answer is NO then book the loss and move on.
(12/n)
Credits: @FinnacleAcademy
Here is the link to the book if anyone wants to read the full book - https://t.co/Ky4dM4BEBx
