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And the primary reason is that one loses more in a single trade than what one probably earned in 5 or more trades.

Humans are inherently risk-averse when it comes to protecting their profits and risk-taking otherwise.

The possibility to make money increases if one acts more like a robot, i.e. acting strictly upon rules decided a priori.




> The possibility to make money increases if one acts more like a robot, i.e. acting strictly upon rules decided a priori.

Only if the rules are correct, for all situations. Robots have lots vast amounts of money because there was a missing or wrong rule. Good luck figuring out in advance all the rules - remember that the situation is changing, and your robot in the mix is itself a change.


>>> And the primary reason is that one loses more in a single trade than what one probably earned in 5 or more trades.

This is the key. Once in a while, on the internets, I see people who say that they developed a strategy that can profit 5% month on month, etc. Excluding the ludicrous claims of 30% and similar monthly profit. However, they are often totally wiped out by a highly unlikely outlier event that should happen once in a century, as they like to call it. Or something similar.

The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb is a good book on this subject.


BTW The Black Swan book sucks!




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