5lb chapter 12-A stockbroker has made a profit on 80% of his 40 trades this year


Let x be the number of additional trades that can be a loss.

We have 32 = x + 8 → x = 24.

The highlighted statement says that we can’t go beyond (32 + 32) = 64 trades without the success rate being less than 50%. In other words, the success rate is 50% when we have 32 profitable and 32 trades that are at a loss. Get one more additional trade that’s a loss and the success rate is less than 50%.

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