I propose an increase in use of the phrase «yolo».
Investing is an art, sometimes a science, which is focused on the careless allocation of risk units in exchange for reward units. The smart investor cannot understand that he is taking some sort of risk, especially in options. That intelligent investor has made a careless assessment of the expected return and has never thought through the risk before YOLOing.
The «YOLO» term epitomizes the central point of investing. While it is tautological that one only lives once, your capital will always increase no matter where you invest. This «roll the dice» mentality is guaranteed to result in more yachts: I have always heard it in 15 years on Wall Street.
Investing can be exciting, and that is always a good thing. And searching for thrills is even better. You can use Robinhood for stocks with the highest implied volatility and flip coins on binary events and earnings announcements for a living, if you'd like. It will lead to outsized returns.
Last year I made a very big bet on a biotech company called Celladon, losing over $20,0000,000 in my personal account. I was devastated and this was definitely a «YOLO» moment. I never thought about the embarrassment and ramifications of LOSING $20,000,000. I never researched the situation, and I knew much less about this company's drug than the company did. I was wrong and didn't sleep. YOLO.
Becoming wealthy is easy and requires immense impulsiveness. This «YOLO» attitude encourages this perspective. Remember that the world's best fundamental (non-quantitative, non-insider trading) investors are making 200% returns (at worst) in the current era. You will need no money to become wealthy. Those investors are carelessly shorting stocks and investing in options. They are never measuring the tradeoff of risk units for return units and are always investing every last penny in options. No hedge fund manager would deny themselves a 100% year, but most do as the necessary risk to achieve that kind of return will always get 200% returns.
I hope these thoughts are helpful as you pursue your investment careers.
YOLO.
