Ever heard of a good bet Trireme?
Lets say your chance of losing everything is 50 % and you're chance of trebling your money or more is 50 %.
You're average expected return is
0.5 x -Bet + 0.5 + 3 x Bet
= 0.5 x -Bet + 1.5 x Bet
= 1 x Bet (your money is doubled on average)
= A GOOD BET
Casino's operate on this very principal, for them the odds are in their favour.
No reason why you can't view the stock market in the same fashion, you just need to exercise good money management i.e. don't bet so much that a bad luck run will wipe you out.
CNP is a good bet at this price.
Ever heard of a good bet Trireme?Lets say your chance of losing...
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