$64,000 question

[Cheese]

Quote from traderich:
the only sure things in life 'cheese' are death and taxes!

The next best thing to a sure bet are horseshoes and hand grenades!

anything else has to account for some risk...and if I could flip a coin a ga-zillion times and risk a dollar to win 2 dollars, I'd have all the money in the universe...

I am amazed at how stupid some people really are on this planet.

Yes I am amazed how stupid a few people can be.

You are not going to be offered bets of coin flipping risking 1 penny to make 2 each time you win. It is not serious.

Trading however is serious. You need to make sure you take from what the market offers each day.

 

[esuperbo]

For the initial question, I would certainly risk it. 50/50 chance of getting 32,000 or 125,000 = expectancy of 78.5 > 64.

 

[danoXP]

If the amount risked is 5% or less of my net worth, I would always take those 50/50 odds with that 33/67 payoff.

However, you would never get me sitting on national TV on a game show.

 

[jessop]

I was in the no camp.

Two reasons :

1) I only risk 1% of my trading capital on any one trade - I would need to have $3.2m to take this trade.....

2) 50% W/L is not good enough for my risk tolerance. I am in the 70-80% camp.

Cheers

J