Why aren't you making money from trading?


Have you ever played Texas Hold'em poker?
If you've played poker,
then you should have experienced turning your chips into several times their original amount at a single table. This is called deep stack in poker terminology.
Suppose you and another opponent enter a heads-up match,
both of you are in deep stack mode,
your opponent goes all-in before the flop, holding AA,
with an 80% chance of winning,
should you CALL their all-in?
From a purely mathematical perspective,
of course, you should CALL.
But this call has a prerequisite.
If your account still has a lot of balance,
enough for you to continue playing after losing,
then you should definitely CALL.
But if the current table is your entire stack,
do you think you can keep playing if you lose?
Without redundancy for error tolerance,
even with a very high win rate,
it's useless.
Once a low-probability event occurs,
your final outcome is being eliminated by the market.
No matter how much you earn at the table, you can't hold onto it.
If you can't hold onto it, then it isn't truly yours.
Many people probably have short-term contract experiences
that turn their accounts into several times their original size, right?
The feeling of compound interest is really wonderful, isn't it?
But how long can this state last?
People always make mistakes.
Holding all your money,
constantly compounding trades,
is like a poker player entering deep stack mode.
When he confidently calls his opponent's all-in with AA,
he doesn't realize he simply can't afford to lose.
A game you can't afford to lose,
how can you achieve stable profits? $btc
BTC-1,29%
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)