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A comment on Reddit’s profane, greedy traders are shaking up the stock market. Parent comment

Re:Reddit’s profane, greedy traders are shaking up the stock... by cameronh90 on Wednesday February 26, 2020 @09:25PM (#22429786)
Consider that even if you're right 75% of the time, if you bet all your money each time, you're going to go broke pretty quickly.

Their biggest losers are probably making essentially random bets in such a stupid way that they lose all their money.

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Re:Reddit’s profane, greedy traders are shaking up the stock... by zelly on Thursday February 27, 2020 @04:03AM (#22431774)
The Kelly criterion provides the optimum bet size given the chance of winning. The adversarial brokerage could use the Kelly criterion and only make a wager commensurate with the likelihood of the trader's failure. It should be profitable. Suppose the brokerage just puts 5% of their cash toward this. It could be a nice profit center without risking everything.
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Re:Reddit’s profane, greedy traders are shaking up the stock... by imtringued on Thursday February 27, 2020 @04:32AM (#22431893)
They could also just keep your money since you lost it on bad trades.
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