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All moments › Why Most New Traders Fail (A 20-Year Pro Explains) | ft. Will Hunting

S&P 500 recovers quickly from 4-5% drops. Historical frequency analysis shows rare 20% corrections.

From Why Most New Traders Fail (A 20-Year Pro Explains) | ft. Will Hunting · jumps to 1:22:26 · speech

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Anytime she's dropped four or five percent, right? She tends to recover quite quickly from it, right? And four and five percent. And the normal conditions is considered quite a big correction. You know, if you kind of look back and say, look, what's the frequency of a one percent correction? What's the frequency of a five percent correction? What's the frequency of a 10 percent correction? What's the frequency of a 20 percent correction? Well, if a 20 percent correction has only happened, you know, like seven or eight times over the last kind of, you know, six decades or something, what's the chance of that happening now? What on earth makes you think that you're that fucking luddy, that you're taking a short and there's going to be a 20 percent correction?
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