If, through risk management you are able to ensure that your profits and your losses are the same size, you only need to be correct 51% of the time to make money.

What other test can you take in life where 51% is a passing grade?

The reason that most people fail in this respect? Because to set a limit to your losses you have to be accepting of the fact that, before investing, you are going to lose money.

If you’re lucky, you’ll lose it 49% of the time….