[Token Quote] "If you accept small losses, you can avoid big losses" ㅡ Day 84

If you accept a small loss, you can avoid a large loss.

-Nassim Taleb-

Dalio's 'All-Weather Portfolio' is a structure designed to generate stable returns in any economic environment by appropriately combining stocks, bonds, gold, and commodities. The key is not simple diversification, but a combination of assets with low correlation. If Bitcoin and stocks move in the same direction, there is no diversification effect. True diversification involves creating a structure where one asset holds up when the other falls.

A reasonable stop-loss is like an insurance premium.

Nassim Nicholas Taleb (born 1960) is a Lebanese-born mathematician, statistician, and risk theorist. As the author of *The Black Swan*, *Antifragile*, and *Skin in the Game*, he proposed the theory that unpredictable and shocking extreme events ('Black Swans') determine history. A former Wall Street options trader, he is famous for profiting from his predictions of the 2008 financial crisis and has demonstrated the importance of tail risk management and antifragility in both theory and practice.