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Eat Well, Sleep Well

Could be an answer to the question "should I eat these gordita supremes from Taco Bell right before I head to bed?" Or, in finance, it's a saying that underlines the risk-reward equation that lies behind pretty much every transaction.

When deciding how to invest, you need to balance between two basic goals: how much return are you looking to achieve and how much risk are you willing to take on...the old greed/fear dynamic that people identify as the dual engines of Wall Street.

The phrase "eat well, sleep well" turns on this quest to find the proper mix between reward and risk.

"Eat well" is the return part. Like, "if my stocks pay off, I'll be lunching at Nobu every day." "Sleep well" is the risk part. Like, "I can't sleep, because if this bet doesn't pay off, they're coming for my house."

Find other enlightening terms in Shmoop Finance Genius Bar(f)