The essence of finance is “probability,” and it is not a gam...

The essence of finance is “probability,” and it is not a game of steady profit without loss.

If you know that 100% of your house will be destroyed by the hurricane, you will inevitably not buy insurance, nor can it be sold to you. You will definitely choose to move in the end to avoid this risk.

But luckily, the probability of destruction is far less than 100%, so in the end you decided to stay and buy another insurance.

The same goes for trading; you don't know if a trade can make money. But if you look at it from a long-term perspective, your rewards will far outweigh the level of risk.