I think you’re partially correct, but you’re missing out on the asymmetry of the risk/reward payoff. People often forget that there is a lower bound to losses (

I think you’re partially correct, but you’re missing out on the asymmetry of the risk/reward payoff. People often forget that there is a lower bound to losses (zero), but no upper bound on price (and therefore profit). Also, most of these bets that have super high payoffs are initially made when others were walking away from similar bets. There’s significant research to support this, too.