$64,000 question

Discussion in 'Psychology' started by traderich, Dec 8, 2005.

If you had it down to a 50/50 guess for the $125k on Who Wants to be a Millionaire

Poll closed Dec 29, 2005.
  1. I'd risk losing 32k to win 64k on a 50/50 guess

    22 vote(s)
    37.3%
  2. I would NOT risk 32k to win 64k on a 50/50 guess

    37 vote(s)
    62.7%
  1. Cheese

    Cheese

    Yes I am amazed how stupid a few people can be.

    You are not going to be offered bets of coin flipping risking 1 penny to make 2 each time you win. It is not serious.

    Trading however is serious. You need to make sure you take from what the market offers each day.
    :)
     
    #11     Dec 8, 2005
  2. esuperbo

    esuperbo

    For the initial question, I would certainly risk it. 50/50 chance of getting 32,000 or 125,000 = expectancy of 78.5 > 64.
     
    #12     Dec 8, 2005
  3. danoXP

    danoXP

    If the amount risked is 5% or less of my net worth, I would always take those 50/50 odds with that 33/67 payoff.

    However, you would never get me sitting on national TV on a game show.
     
    #13     Dec 8, 2005
  4. jessop

    jessop

    I was in the no camp.

    Two reasons :

    1) I only risk 1% of my trading capital on any one trade - I would need to have $3.2m to take this trade.....

    2) 50% W/L is not good enough for my risk tolerance. I am in the 70-80% camp.

    Cheers

    J
     
    #14     Dec 9, 2005