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I can turn that 100K into zero through a string of bad 10K trades in the same number of trades it would take you to turn your 10K into 100K from a string of successes.

I think I understand what you are saying, but I still think the principle is there.

First, turning all 100K to zero takes some really spectacularly bad trading. It implies that not only does every investment go bankrupt, but that one blindly sits and lets it go that far without ever trading out. But, admittedly, by holding on it is certainly possible to turn $100K into $10K fairly quickly.

Second, I think your example is questionable because you are assuming that 90% of the portfolio is in cash, i.e., doing next to nothing. If that $90K is invested instead and grows even a little, it can offset the $10K loss thereby allowing one to keep investing $10K in stink bombs on a permanent basis! :)
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