I saw this article from the fifth person while having mee goreng for lunch. The article talked about how you can increase your wins in investing. All in all, a good piece of article. Sound investing advice. The only complain that I have is that it’s not sound mathematically. I’m being anal about this, of course, and it’s all because of one word. But let’s hear my arguments.

You play a game of tossing a fair coin. If it shows heads, you get $2. If it shows tails, you lose $1.

So what’s the expected gains/loss from playing such game? It’s 2 x 0.5 – 1 x 0.5 = $0.50. So the article mentioned that if you play one such game, you might not get $0.50, but after playing a large number of games, notably 100 such tosses, the law of averages will kick in and …