Please post some mathematical misconceptions that you have encountered with trading.
I will start with one:
People tend to assume that if they have an equal % gain and loss they will end up even or with their starting capital. However, this is not true. A loss does greater damage to your account than an equal % gain will build up your account. In essence people under estimate the power of losses and overestimate the power of gains. Therefore a system with a much higher probability rate is…