Idea Ripper // ArchiveCards: 1555 [Live] | Updated: 2026-10-14
Card #c1285IR // #c1285Synthesis

"Principle 14: Avoid risk of ruin first. Maximize returns second. If you blow up, there will be no returns."

— In our words · Source: Trade Outside the Box (Brent Donnelly)

[Use when]

A high-return plan carries a small chance of wiping you out.

[Why it matters]

Getting stopped out on a trade that later works is a cost of staying in the game. Donnelly treats it as luck that evens out. A loss that ends the game never evens out, so survival constraints come before upside.

Filed under situations:When you must decide and the facts aren’t in

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