Let me introduce you to the mathematical theorem of gambler’s ruin.
Basically, gambler’s ruin was invented by some cucks in the 1600s that mathematically proved that a gambler making positive expected value bets (imagine a dice rigged in your favor) will eventually and inevitably go broke, in spite of the odds being in their favor, if they don’t lower their bets as a % of total bankroll when they lose.
In other words, even if you are WSBGod and are making random ass option plays that have a 99.9999% of winning. It is a statistical certainty that you will eventually lose all your money if you don’t lower your bets when you lose.
- Lower your bets as a % of the cash you have available to invest
- Stop doubling up / chasing your losses
- Stocks only go up, yes, but manage your bankroll appropriately
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.