“Trend following would be a majority small losses with a minority big winners…”

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Michael,

I understand equating your investing (trading) style to the VC guys or entrepreneurs, but I’m not catching the casino connection. Can you help me understand that please, so I can learn?

On average, wouldn’t the casino win more and lose less? Small consistent winnings that pay for the occasional big loss? Trend following would be a majority small losses with a minority big winners which exceed the losses, right?

Loved the “investing implies…” description, btw.

Evan C.

Casino comp:

— Odds thinking.
— Mathematical expectation.
— Having an edge to bet on.

Also read my book Trend Following.

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