The very act of investing is the act of taking on risk. It's not free money, you are being rewarded for taking on the risk.
Every disclaimer you will see in the trading world has the disclaimer "Past performance is not an indication of future performance".
Everything in trading is probabilities, which is a way of thinking humans mightily struggle with.
A good day to day example is when a weather forecast calls for an 80% chance for rain on the weekend, so you cancel your camping trip. It ends up not raining, and you curse the meteorologist for being wrong.
They were not wrong - yet most people say they were, showing they are unable to think in a probabilistic way.
Every disclaimer you will see in the trading world has the disclaimer "Past performance is not an indication of future performance".
Everything in trading is probabilities, which is a way of thinking humans mightily struggle with.
A good day to day example is when a weather forecast calls for an 80% chance for rain on the weekend, so you cancel your camping trip. It ends up not raining, and you curse the meteorologist for being wrong.
They were not wrong - yet most people say they were, showing they are unable to think in a probabilistic way.