NIFTY TARGETS 5568-5525 Today (Positional 5498-5391)
1 Risk is not the same as volatility. Assets can be volatile on the upside as well as the downside. Risk should instead be viewed as the permanent loss of purchasing power.
2 A risk should not be evaluated based its frequency. Some risks only have to happen once to be catastrophic.
3 Sophistication and knowledge are not a form of or substitute for risk management.
4 Although following the crowd may feel comfortable, risks are just as catastrophic whether you suffer with company or suffer alone.
5 Bullish consensus manufacturers the greatest risks because nobody is prepared and everyone runs for the exits at the same time. Strong optimistic consensus provides a sense that nothing can go wrong. This is why the greatest catastrophes seem to come out of the blue.
6 Activity, research and analysis provides a false sense of control over the future. However, devastating losses rarely due to a lack of brain power or analytical prowess.