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by logifail 1501 days ago
> but see it as to high of a risk to put 10k into something that could go to zero but it also could go to 100k or even more. That does not make much sense

You could walk into a betting shop and put 10k on all kinds of things that will most likely go to zero but have a finite probability of going to 100k or even more.

Q: How do you suggest determining the odds of success? Most of us can't invest in every 10k opportunity (and even if we did, we might not win out in the long run)

1 comments

If the odds are obviously against you its not useful ofc. If you think there is a 50% chance you lose everything then you should also see a 50% chance that you make over 100% profit if that is not realistic its probably not the right thing.
> If the odds are obviously against you

Can you define "obviously"?

Spoiler, but for financial investments, there are no [genuine] odds. That's kind of my point about the efficient markets hypothesis.

For example, Tesla was at $88.60 on January 3, 2020. It's at $728 now (and peaked[?] at $1222-ish in November 2021].

Presumably there were not very many people who, in January 2020, thought Tesla would increase in value, or it wouldn't have been at $88.60 for very long.

Roulette is an example where the odds are against you and its obvious. Your chance to win in statistically lower than 50% and it should be higher than 50%.