New     Submit     Search     Register  
What can Nassim Taleb teach us about probabilities?

Most people don't understand probabilities. They think that if a probability of success is high, that means they can benefit from it indefinitely. A stock trader, for example, might look at the probably of making a large return, and risk everything on it, over and over again.

In reality, however, if there is a smallest chance of an absorbing barrier, an event in which your lose everything, then it is just a matter of time until that even happens, and you will lose everything.