What does ‘picking up pennies in front of a steamroller’ mean?

Picking up pennies in front of a steamroller is a saying used in the world of trading and investing to describe a situation where an individual or organisation is focused on small, insignificant gains instead of considering the potential risks and drawbacks.

In this scenario, the steamroller represents the potential risks and dangers of the market, such as economic downturns, market volatility, and other unpredictable events. The pennies, on the other hand, represent the small gains and returns that an individual or organisation may be able to make through short-term, low-risk investments.

While it may be tempting to focus on picking up these pennies and trying to maximise short-term gains, this approach ignores the potential risks and dangers of the market. By only focusing on the small gains, an individual or organisation is putting themselves in a vulnerable position and ignoring the potential for larger losses.

In the world of trading and investing, it is important to consider the potential risks and rewards of any investment decision. While small gains may be appealing in the short term, it is important to consider the long-term implications and potential risks of any investment.

In summary, picking up pennies in front of a steamroller is a cautionary tale about the dangers of focusing on small, insignificant gains without considering the potential risks and drawbacks. In the world of trading and investing, it is important to carefully consider all potential risks and rewards before making any investment decisions.

“Truth be known, forecasts aren’t worth very much, and most people who make them don’t make money in the markets.. This is because nothing is certain and when one overlays the probabilities of all of the various things that affect the future in order to make a forecast, one gets a wide array of possibilities with varying probabilities, not one highly probable outcome.” – Ray Dalio

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