World 0: Money & Safety

Trading, investing… or gambling?

3 lessons · about 26 min · 2 practice games · quiz pass mark 80%

By the end of this chapter you'll be able to

  • Distinguish trading, investing, and gambling by time horizon, edge, and expectancy
  • Explain why a good outcome does not prove a good decision (and vice versa)
  • Identify money that is safe to risk versus money needed for living expenses
Start the first lesson0 of 3 lessons read
  1. 01
    Three ways to put money on the lineSeparate investing, trading, and gambling by how each one actually works, and see why the same asset can be all three.9 min
  2. Practice drillSort Quest: Three Ways to Risk It
  3. 02
    Luck is loud, process is quietJudge decisions by the reasoning available beforehand, and recognise why winning badly is the most dangerous outcome.9 min
  4. Practice drillSort Quest: Good Call or Good Luck?
  5. 03
    Risk capital: which money is even allowed at the tableDecide which money may be risked at all, before any question of how to trade it arises.8 min

  6. Ready to prove it?

    Pass at 80% to unlock the next chapter. Unlimited retakes. Each retake draws fresh question variants, and misses come back with targeted review.

    Take the chapter quiz

Terms introduced in this chapter: Emergency fund, Expectancy, Expected value (EV), Variance, Edge, Outcome bias, Decision quality, Compounding, Risk capital.