An investor's dilemma and mistakes

There are 2 types of mistakes that an investor can commit: I) Investing in a bad opportunity because he was not able to see its risks II) Failing to invest in a good opportunity because he was not able to see its potential The problem is that these mistakes derive opposite attitudes, so it's not easy to avoid them altogether. If you are too optimistic, you decrease the chance of losing good investments and increase the chance of investing in bad opportunities. If you are too conservative, you increase the chance of losing good investments and reduce the chance of investing in bad opportunities. There is no total cure for this conflict. The best thing to do is increase your level of knowledge about each opportunity to the maximum, to have the most objective judgment possible and increase the assertiveness of investment decisions. And even so, each investor needs to choose the lesser between these two evils, that is, which type of mistake he prefers to run the greater risk of committing. We prefer the approach that minimizes Type I errors. We are very conservative, at the risk of missing out on good opportunities, to reduce the chance of making bad investments. After all, avoiding losing money, the alternatives that remain are: earning a little or a lot of money; that make an investor little or very happy.