{quote} #80 Nonetheless, good practice for demonstrating the solutioin process within the next couple of days, maybe weeks. As matters stand today {image}
The Difference between Risk & Uncertainty
When trading the forex market you have to learn one important thing: The difference between risk & uncertainty and the difference between them.
Risk means that the probabilities are known. Uncertainty (or ambiguity) matters that the probabilities are known.
On the basis of risk, you can decide whether or not to take a 'gamble'. In the realm of uncertainty, though it's much harder to make decisions.
Rolf Dobelli describe in his book "The Art if Thinking Clearly": "The terms risk and uncertainty are as frequently mixed up as cappuccino and latte macchiato - with much graver consequences. You can make calculations with risk, but not with uncertainty" The 300-year-old science of risk is called statistics. A host of professors deal with it, but not a single textbook exists on the subject of unertainty. Because of this, we try to squeeze ambiguity into risk categories, bit it doesnt really fit". Do you know the Ellsberg Paradox?
No, so learn about it. Acquaint yourself with it!
The Ellsberg Paradox offers empirical proof that we favour known probabilities over unknown ones.
FXcube.
Advanced Trading
Charts show me extremely often domains where I should better not making investments or if with something then with a lot less risk due to the fact that the ambiguity seems too much.
FXcube
