Having a zero sum game doesn't require a 50-50 split between winners and losers. Also stock prices follow geometric Brownian motion under the assumptions of Black-Scholes not a Gaussian distribution.
Here's the index to mine Define each sub heading clearly..., concisely.., and simply Leave any mkt reference out of it - this is what YOU will do..., how YOU will do it..., when YOU will do it - repeatedly and consistently Regardless of what the mkt is doing RN
You betchca Sir ============================== Then - when trading - each trade gets a trade plan Entry signal / price (entry signal should be appropriate for.., and within price's current context) SL / PT (SL - set where the trade breaks down / signal invalidated..., PT should be appropriate for.., and within price's current context) Means/ way of managing the trade WRR Off to the races we go RN
Within RN's A&M, I can see one 2 letter word that has, and will continue to, present vg trading opportunities if you are there! RN might not agree, but RN is not me, you see! More than one way to skin a cat, but only one way to trade correctly! J_S
The logarithmic returns, and the probabilities for winners/losers, are normally distributed (Gaussian), and since negative stock prices isn't possible, the net effect is a lognormal distribution. Just do a simulation for 100 traders and 1000 trades each do: 50% of the trades will win, 50% will lose, and that will be similarily distributed for the traders: 50% will have won, 50% will have lost...
Apologies, as I was getting setup to do a small trade on ES option. I meant two words, of which there are a few, but as mentioned, you have to be there to do it! Two words are closer to the bottom, than the top. J_S