So you need to reduce the risk according to your risk tolerance. - Limitation of Risk
Risk tolerance is a human attribute
- For example, a junior high school student worries about buying a 2,000 yen technical book and borrows an old book from the library instead of buying it in the end.
- On the other hand, working engineers think that a 2,000 yen technical book is cheap, and buy it immediately without checking its reputation.
- What is the difference? It is the difference in risk tolerance for “buying books”
- Differences in disposable income is one factor, but I think Differences in risk-taking experience is a bigger factor than that.
Risk tolerance is a person’s attribute, and no one but you can adjust it to match your risk tolerance.
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