Think 50/50 bets mean breaking even? Wrong. Math proves if you play long enough against an opponent with infinite capital (The Market), you will surely go bust. This is Gambler Ruin.
🔸 Mathematical Mechanism:
The difference between your limited capital and the market's infinity. You have $1,000. The Market has trillions.
If you keep betting randomly, eventually you will hit a losing streak long enough to hit zero. At zero, you are out. The market never hits zero.
Even if you win many trades, if you don't stop, this theorem guarantees you give it all back.
🔸 Escaping The Curse:
Raise win rate > 50%. Don't enter random orders
Tight Money Management. Never let a streak wipe you out (1% Rule).
Know when to stop. Withdraw profits from your trading account. Don't let money remain virtual, turn it into real money.
🔹 If you treat Trading as gambling, math guarantees you lose everything. Only discipline saves you from this theorem.
Are you playing a game where you have an edge, or just feeding a slot machine?
News is for reference, not investment advice. Please read carefully before making a decision.
