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by Chickenality 2693 days ago
> (which lead to subsequently wiped out all our gains in a week)

This is the key point. Many strategies that yield above-market returns often do so only because they're taking on large amounts of risk, even if that risk isn't immediately apparent. Think about trading cryptocurrencies, buying penny stocks, selling naked options, etc. You _can_ make a lot of money doing any of these things, but you'll be exposed to quite a bit of downside along the way, and most people who try will end up in the red.

2 comments

Aka “picking up pennies in front of a steamroller” or “selling insurance” or “writing naked options” etc.
...given sufficient hours/time in the game.

Just to bring the thought home.

Im a blackjack player, and i calculate my returns at 100hours of play because of this manifestation of the law of large numbers