A popular Youtuber says “Money is a doubles game” And 1000$ when doubled ten times becomes a million dollars! The real essense is to grow money slowly and be patient, money is never a doubles game.
Let me explain mathematically you have 1000 dollars you put it all in and take a 70 percent chance to double it and it is a sure shot opportunity but you end up losing. You had roughly a one in three chance of losing it all. With one hit your capital becomes zero. Now for a 70 percent chance let us imagine you put down just 100USD but you lose, now you can put 200 USD on the same 70 percent chance , if again you lose, you are down 300USD but you still have 700USD to recover and make some profits again you recognised a great opportunity and put down 400USD this time you doubled and now you have profit of 100 USD profit all the while your risk of being down to just 300USD was 0.3*0.3*0.3 a chance less than one in thirty. If we follow Kelly criterion or even half Kelly our chances of going broke would be less one in thousand. This means that when you identify great opportunities and risk very small amount of capital your chances of losing it all become extremely small all the while when the same thing is done over and over through the power of compounding your wealth becomes big.
People lose money because they are not hard wired to grow money, they end up taking risk and lose a big part of their money, now to get back even they need to take bigger and bigger risks and this leads to capital becoming zero. This is why average people should Focus on earning money daily and providing services while leaving a surplus at several different places like Gold, Crypto, Mutual funds, wealth managers who will slowly grow that money.
We have our NFT’s on OpenSea that you can purchase and invest your disposable income with us which will net you extra monthly salary in the form of 7 percent which is atleast ten times more that what would you get from bank fixed deposits!
VGET Capital Management 