How Trading Veterans Approach Risk and Uncertainty HOW I LOST

Question

How Trading Veterans Approach Risk and Uncertainty HOW I LOST

$15 MILLION

[Excerpts]

A lot can happen in one year.

In 1996, I sold my first company one year after I launched it.

My cut? $15 million.

I’d gone from zero to $15 million in one year. I felt like I’d won the lottery.

But then, suddenly, a weird thing happened: $15 million felt like chump change.

I start watching these guys make $100 million, $200 million, and I’m thinking, “What’s wrong with me?”

So I started taking on insane risks.

Fast forward a year, I’m at an ATM staring at $143.

I lost everything.

Fifteen million to $143.

How? It’s easier to do than most people think.

You do it by not understanding risk.

Most people don’t understand risk. The world would be a better place if we did understand it.

Risk is the single-most important thing everyone needs to understand…

If you don’t know them, they’re two of the sharpest minds on probability and human behavior…

…Most people get it wrong because they don’t separate risk from uncertainty.

They think they’re interchangeable, but they’re not.