I believe most investors at some point in their investing journey (I myself included, both as my current journey as an investor, and my earlier attempt at being a futures trader), took a position outside their methodology/system as well as quite likely outside their risk appetite. In life, we engage in situations everyday where we have to assess and deal with the level of risk, such as crossing the street, taking that new role at work or making investment decisions. Our brains analyses the potential risk to reward tradeoff, but not always in the most rational manner. There are instances where we would be prone to taking higher risks than necessary, and it is quite a killer in investing. It is good to know that risk to reward evaluations take place on a psychological level and is a conflict between two parts in your brain, one part that processes memory, ......