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I agree having a gun in this situation would have been to your benefit, but I disagree that showing it might have been the best option. In my eyes, and this is just my opinion, but to un-holster a concealed hand gun should only be done when you have decided you are ready to use it. In the situation you were in, or any situation of that sort, drawing your weapon will do one of two things, 1 scare him like you said and possibly teach him that pulling knives on some one could end up with you getting hurt or killed or 2, and this is why I say don't pull it unless you area ready to also pull the trigger, he goes from trying to threaten to feeling threatened and could decided to attack. The example you gave is a good one showing its not always needed to pull the gun and take the situation to that level. You were threatened and the situation was ended with both people walking away without a shot fired or a knifed used. The one thing about the situation you were in, if he was close enough with a knife to make you feel scared, 9 times out of 10 (unless you are trained at pulling and shooting on target within .005 seconds) if you had reached for your gun he would have seen your action and been able to stab or cut you before you could have the gun pulled, on target, and shot. All this being said I am not bagging on you or trolling trying to start a debate, like I said at the start this is just my opinion and I am sure there are many others that feel otherwise. It all comes down to each situation is different and some times the amount of time you have between when the situation starts and when you need to decide to pull and shoot or not is so short you might make the wrong one but just make sure no matter what you do if you decide you need to use your gun be ready to use it and do not change your mind after because once the situation is to that level you are now in a life or death situation and having a change of heart after it has been pulled could lead to you being the one the cops are bagging up.