Risk and Regret

This is a masterpiece by Morgan Housel. I definitely would have been a better person and consequently, a better trader if I had read and most importantly, imbibed this in my life earlier.

The reason I’m saying this is not because I made huge losses. I didn’t. I was lucky enough to be profitable. But, I missed something bigger and that it is not just about losses or the numbers. The opportunity costs are way too high when we are young and that’s what we need to focus on when we do something especially if we are into full time trading.

Whole article is a masterpiece but here are some of my personal favorites:

  • What a terrible thing to realize when it’s too late. And I wonder if it’ll become more common as many of us spend our days aimlessly scrolling our phones.

  • Risk isn’t how much money you might lose. It’s not even necessarily how you’ll feel when you lose it – over time, a lot of painful experiences turn into cherished lessons. Real risk is the regret (or lack thereof) that might come years or decades later.

  • The other side of this is that most ordinary people can afford to not be a great investor, but they can’t afford to be a terrible one. Warren Buffett once remarked on the failed hedge fund Long Term Capital Management and said, “If you risk what you need in order to gain what you don’t need, that is foolish. It’s just plain foolish.”

Please give this short article a read and maybe multiple reads. I, for sure, will do it till each word is imbibed in my thought and being. :slight_smile:


If I hadn’t scrolled my phone now I wouldn’t have seen this… :joy: :rofl:. I guess addiction and obsession need to be controlled. But something is not bad as is.

For me it is a foolish proposition to travel in future to 80 and then backcast to minimise my current perceived regrets @80 by modifying what am doing today. Life is too fragile, dynamic and unpredictable to plan like that. For me it is better to be here in this now and do what I love to do now and what makes happy today.

Wise proposition to remember when one is engaging with the stock market or doing business.


Good one and fully agree.

Yes, Like this too. Life is too fragile, just being alive is a blessing. A silent prayer for the survivors of the earthquake in Turkey and Syria. The dead has gone to a better place but a prayer for the survivors and the children - This is reality - all it takes is few minutes. Everything is gone.

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Any day above the ground is a good day :+1:

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