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Expected value: probability-weighted thinking

Expected value multiplies each outcome by its probability and adds them up. Why a trade with a 40% chance of +20% and a 60% chance of -5% is still worth taking, and why a positive-EV trade can still lose money many times in a row.

~5 min read · AI-written, human-reviewed
Generating your lesson in plain English…

⚠ Disclaimer: Educational analytics tool only — not investment advice. Signals reflect past price data and may fail without warning. Trading rules and regulations change frequently. Consult a licensed financial advisor or registered stockbroker before making any trade. Cert Training Hub LLC bears no liability for any financial loss resulting from use of this platform.