087: Tom Sosnoff – Speaks on Life Experiences, Trading Options, and Reaching Your Potential
Chat With Traders
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The Law of Large Numbers in Trading
Aaron: How does the law of large numbers play into your trading? Sure. I think it's very good that you can. Let me give you a really easy example. You have a handful of pennies. If you throw up 100 pennies in the air, you may end up with 60 or 70 pennies coming up heads and only 30 or 40 pennies being tails. All of a sudden you go around saying, hey, I'm really good at flipping coins. Well, in the world of investing, we think that person that got 10 heads or 10 tails is a genius. And they're not. It's just the statistical chance of coming up with 10 heads or10 tails
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