- The martingale strategy asymptotically implies infinite capital or infinitely divisible stake. In reality you have a limited capital and there is a lower (in casino also an upper) bound of the stake.
- In a fair game (with 50/50 chance of profit and loss) the probability of profit after a series of losses is still 50% (because the outcomes of bets or trades are independent from each other).
- Typically, if you win then your profits are moderate but if you lose, the losses are severe (you can lose your capital just after a small series of unlucky bets).
- If you make pretty many bets, you might make a good profit but the probability to make profit at all decreases with the number of bets. Losses stays severe.
Continue reading "Mystery and misery of the martingale betting system: why it will not make you rich"
- Gambling with binary options you either lose 100% or earn about 90% of your stake. The win lose/ratio of 90/100 = 0.9 is worse than by the European roulette (36/37 = 0.973) and even by American roulette (36/38 = 0.947).
- A trade takes just a couple of minutes, which allows (and implicitly encourages) you to commit a lot of trades. Due to the law of large numbers and negative odds, the more you trade, the more you lose.
- Don't trust numerous "success stories" in Internet. Virtually all of them are fake and they are just a marketing trick of brokers or those who earn with brokers' affiliate programs.
Continue reading "Binary Options: you may earn in a short term but eventually you WILL lose"