Trap #2 Does not understand the importance of risk

Quick Points

• Rewards are exciting, and risk is uncomfortable. But you can’t have one without the other. To gain reward, we must accept a level of risk.
• Investment is about the balance between risk and reward. To balance risk, investors need to diversify
• Investment success lies in identifying the risks that bear compensation, choosing how much of these risks to take on, and then striving to minimize the risks and costs imposed by traditional approaches to investing.

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