Mathematicians like D'Alembert and Paroli have devised strategies to improve odds in gambling, which can be effectively used in money management.

Consider the following trade. An investor buys stock X at a given price. X falls in price. So the investor buys again. X falls again; the trader buys again, perhaps increasing his commitment because he is confident about X's long term prospects. Each time, he is lowering the average cost of the holding. Read more »