Sjuggerud on risk
From the IITM Volume 8, Number 12 (121) December 2003 Market Mastery newsletter ("An Interview with Steve Sjuggerud By Van K. Tharp, Ph.D.")
Tharp: Okay, let's close on some investing principles that are important for you.
Sjuggerud: Limiting the impact of my bad decisions is right at the top of my list. Novice investors always shop for returns, but great investors shop for low risk and they know their returns will come. That is very important. The reward is always an unknown. For example, in my gold coins I know that my downside is 10%. But what is the upside relative to my risk? Ten to one or three to one? It's hard to guess, but I know the ratio is pretty good and that's what's important. If you invest in things that have the potential to do well and you limit your risk, you'll do fine. ( emphasis mine)