Practise Risk

March 25th, 2011 § 2 comments § share on facebook

After two months running a “safe” algorithm on the markets Stocktrack tanked and lost all its gains in a week. As difficult as it is, I appreciate the higher risk tolerance I have developed from it. There are no safe options in life so if we’re risking everything, everyday, why not shoot for the best possible?

Security is mostly a superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. Life is either a daring adventure, or nothing. - Helen Keller

I looked back over the performance data and found if I were running an algorithm with a higher failure rate it would’ve performed 9x better than the “safe” option over the same two month period.

There is a risk-reward balance in everything, but by actively practising risk, pushing a little outside of your comfort boundaries each day you open yourself to greater rewards it brings.

Perhaps to get the home runs you need to strike-out a little more than average. Tomorrow will you regret not taking a little risk today to achieve your dreams?

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