In five seconds, he could have told viewers how to avoid going bust or underperforming. He did not. I'm going to fix this in this video.
I think Patrick Boyle is great.
But in his recent video, How to Be Right and Lose Everything, he describes an experiment where players repeatedly bet on a coin weighted 60% in their favour.
Watch Patrick’s video here:
• How to Be Right and Lose Everything
The players know they have an edge. Yet some still lose their entire stake, very few achieve the optimal result, and nearly everyone underperforms.
Patrick uses this to demonstrate what a bunch of muppets private investors can be.
But in five seconds, he could have told viewers how to avoid going bust or underperforming.
He knows the secret.
It is a simple position-sizing formula that tells you how much of your capital to risk when the odds are in your favour.
In this video, I explain:
• Why having an edge is not enough
• How betting too much can destroy you
• The simple formula
• How professional gamblers use it
• The history of it.
• How position sizing can help investors avoid gambler’s ruin
This is one of the most important ideas in investing, speculation and gambling—and it is not complicated.
Shame on you, Patrick. You should have told them. (BTW love your channel.)
