Hacker News new | ask | show | jobs
by pid-1 1441 days ago
Certainly during your lifetime you also thought about stuff that turned out to be wrong, but you don't kick yourself about those.

Even if you actually get some big market event right, you are bound to lose everything when you get something wrong eventually.

When you bet one time, there is some chance of winning or losing. If you bet continuously on something when the odds are against you, the probability of losing converges to 100%.

1 comments

Worth reading about the Kelly Criterion: https://en.m.wikipedia.org/wiki/Kelly_criterion
I'm sceptical non professional (and most professional) investors have sufficient information to apply it properly.