How efficient is probability in a stock market What is probability Probability is the measure of the chances that an event will occur it is classified as a number between 0 and 1 where 0 shows that it's impossible and 1 shows certainty The higher the probability of an event the more likely it is that the event will occur How is probability linked All investing techniques and strategies are events of certainty and uncertainty and Usually all the time we don't actually estimate numerical probability but it's always there When we buy a stock or a fund we never know if it will be a profitable gain or a loss but we are aware that betting the probability of gain is greater than the probability of loss To build confidence in betting with help of probabilities efficiency then it always pays to see many occasions of how usual bets worked out in the past and either the stockholders have profited or not Probability theorem for investors So how do some investors can easily and accurately predict short term movements with stocks Let's look at probability theory illustrated in a simple example
