The speculator has to be his own insurance broker, and the only way he can continue in business is to guard his capital account and never permit himself to lose enough to jeopardise his operations at some future his operations at some future date when his market judgement is correct.
Economics tried to model itself on Newtonian physics. It sought to establish universally and timelessly valid laws that govern reality. But economics is a social science and there is a fundamental difference between the natural and social sciences. Social phenomena have thinking participants who base their decisions on imperfect knowledge. That is what economic theory […]
% of Capital Wagered = Expected Net Winnings / Net Winnings if You Win Please follow and like us:0