Real v/s perceived risk

“The reason why most get it wrong in stock markets is that there is a gap between the actual risk and our perception of the same. Most of the times, the risk is at the highest when it is perceived to be at the lowest and vice versa. The risk of terrorist attack was actually the least after WTC event, but the whole of US was terrified”

Adopted from “The Mind of Wall Street” by Leon Levy

#RidingTheRollerCoaster – 114

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