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You're trying to find rational behaviour in gambling: most gambling is not rational. I don't know of any statistics specific to options, but there's other finan

You're trying to find rational behaviour in gambling: most gambling is not rational. I don't know of any statistics specific to options, but there's other financial instruments, like CFDs, that have heavy regulations in some countries because of how much people lose: options will probably go that way, too. For example, if you visit Trading212 and try to use CFDs, you'll see the following warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high riskof losing your money. And yet, Trading212 make huge amounts of money off-of CFDs, despite it being legally required for them to tell people that they will lose their money.

cjrp 4y ago
"Ah but those guys in the 83% didn't know what they're doing/aren't following the plan I am/haven't done the course that I have". It's a bit like riding a motorcycle and believing that the injury rate is high because other riders are idiots or go too fast or don't wear proper gear, etc.
- mrguyorama 4y ago
  Or like the guy at the blackjack table swearing up and down "I have a system" as he loses hundred dollar chip after hundred dollar chip. Some people seem to find the reality that statistics show us unpalatable, and instead of re-interpreting the world around them with actual data, just decide that statistics is bunk instead. And there are strong and monied players that keep trying to push that angle.
MuffinFlavored 4y ago
> 83% of retail investor accounts lose money when trading CFDs with this provider. How many retail investors think they can be that 17% though? It creates entire communities. You start following people who claim to have success/an edge but you can't see any actual statistics on their track record unless you put the time in to follow them. Think paid private Discord servers where you are paying for a tip on a winning trade.

cjrp 4y ago

"Ah but those guys in the 83% didn't know what they're doing/aren't following the plan I am/haven't done the course that I have". It's a bit like riding a motorcycle and believing that the injury rate is high because other riders are idiots or go too fast or don't wear proper gear, etc.

mrguyorama 4y ago
Or like the guy at the blackjack table swearing up and down "I have a system" as he loses hundred dollar chip after hundred dollar chip. Some people seem to find the reality that statistics show us unpalatable, and instead of re-interpreting the world around them with actual data, just decide that statistics is bunk instead. And there are strong and monied players that keep trying to push that angle.

MuffinFlavored 4y ago

> 83% of retail investor accounts lose money when trading CFDs with this provider. How many retail investors think they can be that 17% though? It creates entire communities. You start following people who claim to have success/an edge but you can't see any actual statistics on their track record unless you put the time in to follow them. Think paid private Discord servers where you are paying for a tip on a winning trade.