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Hey, I’m in the middle of nowhere and behind me you can see there’s absolutely nothing for as far as the eye can see. What they do here is herd cattle and there is nothing. But come with me, I want to show you something just over here. Come with me.
Just over here, I’m going to show you in a second is the result of a massive, very rare but huge impact event. This is the crater left when a medial struck the earth. At 26,000 miles per hour from space a medial will hit the ground a few thousand years ago and cause this massive crater. And this is pretty much a catastrophic event. I mean it’s not a global killer sort of thing, but it wiped out animals and plant life for miles and miles around. And this is kind of the definition I guess of a black swan really, isn’t it? Because this sort of thing doesn’t happen very often. It’s very rare, but when it does happen, it has a massive impact.
And I guess what I want for your trading is that you don’t have an event which causes complete [inaudible] of your account like this. Because if you don’t manage your risk and you are exposed to a black swan, to an unexpected event, or a huge but rare… You may have a huge impact situation in the markets then you get wiped out and end up in financial crisis, your own financial crisis.
So when you’re planning your trading systems and strategies, think about the rare, unexpected events that could wipe you out, because only by surviving knows can you survive as a trader for the next 10, 20 years and continue to make money. You’re going to make sure that you can survive no matter what the markets throw at you. So my name’s Adrian Reid. This is Enlightened Stock Trading, that is medial crater. And don’t let your financial situation end up as disastrous as this. See you in the next video. Bye for now.