In this The Globe and Mail column, I dig into the Martingale Index, a new way to measure when success in investing is actually just the result of increasing your bet size after losses. It turns out many investors who think they’re “buying the dip” are unknowingly adopting a martingale strategy, which can inflate short-term gains while quietly pushing them closer to a blow-up. The column explains how this behaviour differs from true dollar-cost averaging, and why boring, scheduled investing still beats adrenaline-fuelled trades when it comes to building real wealth.
If you lose money in the stock market, do you double down? That’s called a martingale strategy, and it’s dangerous
Casino tactics should have no place in your retirement planning
Preet Banerjee
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