May 26, 2017

Trading paradox: random outcome ... consistent profits

Here's an interesting paradox. 

Casinos make consistent profits day after day and year after year, facilitating an event that has a purely random outcome. 

At the same time, most traders believe that the outcome of the market's behavior is not random, yet can't seem to produce consistent profits. 

Shouldn't a consistent, nonrandom outcome produce consistent results, and a random outcome produce inconsistent results?

Source - Trading in the Zone/Fisher p.102

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