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Tom Domingues wrote:
> In GOD IN THE PITS:Confessions of a Commodities Trader, Mark Ritchie writes
> "...that the commodities trader takes big risks to make a fortune is an
> insidious half-truth based on a fundamental misunderstanding of what it
> means to bear risk. While it may be true that the commodities trader takes
> big risks to make a large amount of money, he does so only when the odds are
> sufficiently in his favor. The point is demonstrated by what I call the Law
> of Gambling or Investing:
>
> 1. If the odds are in favor of the risk-bearer, then he is investing.
>
> 2. If the odds are against the risk-bearer,he is gambling.
>
> Corollary: If the risk-bearer doesn't know what the odds are,he is
> a gambler and a fool." (Pages 201&202
Hi Tom,
You make make a good point to which I would like to add : If you can not
salvage some money, you are gambling.
Suppose you bet $100 on a horse. You researched each horse in the field,
applied the best handicapping techniques to stack the odds in your favor and
selected one that gives you the best chance of winning. But, unfortunately the
horse stumbles out of the gate and falls to the back of the field. Can you go to
the window and get $75 back? Of course not. But in trading that is exactly what
the astute trader will do.
Good luck and good trading,
Ray Raffurty
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