What is the best way to make money on gambling? Own a casino. - Casinos operate as a business. - Casino have table limits to manege and their customers are likely to risk it all. - Casinos have a mathematical edge, and gamblers are at a disadvantage. - Casino has no ego or emotion, but gamblers do.
Now what give us a trading Edge: .Trends .Support and Resistance .Moving Averages .Divergence .Fibonacci Levels .Technical Indicators .Candle Stick Patterns .Harmonic Patterns .Consolidation Patterns .News Catalyst -By them self, technical signals are not reliable enough! but in the right combination...they give you a statistical Edge, turns to a profitable system!!
If you are now talking to yourself, like man I use nearly all of that list but I keep losing money !? Lemme tell you why in the chart above! All what you have to do is to find out which one is your missing circle, and start working on it !
please chick out my related idea about risk management, and why you should always be a process-oriented not a results-oriented also if you can keep a trading journal, cuz it'll help you when things gets bad you'll get back to it and find out what you have done wrong cause without information you can't make improvements to your trading plan.
P.s. if you want more about risk management and ways to limit your drawdowns in trading plz leave a comment ! Best of trading Forex brothas $$
It helped me to revise my trading. Much appreciate!
powderpc
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I like these circles. It's a nice visual and it emphasizes the importance of process. Trading on impulse won't give you testable methods and turns your odds into 50/50 every time.
wstipp18
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I like this. It's a good visual representation
shankaramotay
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I love it. Nice work.
othon.cabrera
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Thanks for the idea, it helps very much! Please keep sharing. Regards!
Melchizedek
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You are correct that most gamblers, even winners at trading treat trading as gambling. But the assumption that to win at trading you must use ODDS, and have ODDS in your favor is erroneous. THAT shall cause losing trades for which you have no explanation. The TRUTH IS that trading is not random action, nor is GAMBLING ON ODDS a sure way to WIN. Perhaps you may become profitable, but perhaps NOT. And CERTAINLY NOT ALWAYS PROFITABLE with that approach. BECAUSE trading is NOT random price action, and guessing is never as profitable as KNOWING. Good luck on your gambling!
YaseenG.Housari
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@Melchizedek, having odds in your favor is 100% truth, but this is not mean you're gonna win for sure in every trade if your profitable system gives you a signals to involve, but our endeavor here is to be profitable in the long run, so this can't be happened if you don't have a trading plan and if you don't then you become a gamblers not a traders and a casino could give you a better chance of winning than forex market. Good luck on your trading !
Melchizedek
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@yaseeng.Housari, Okay, so you didn't understand my comment. If the odds are 100% then that is truth, because KNOWING the Truth IS CERTAINTY. Because the truth is absolute, there can be no chance of being wrong when you KNOW (not think you know, but actually DO KNOW The Truth) The TRUTH. If you're using any "odds" to make a decision then you don't KNOW The Truth, because the Truth IS CERTAINTY. So anything less than knowing, is gambling. I don't care how you calculate odds, it IS gambling, because you are not 100% CERTAIN. Even though I can place the high and the date it shall reach that high, I still need trading skills because of drawdown, and good entry and exit points too. But that's not GAMBLING, because of KNOWING the outcome; price and date.
Katoomer
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@Melchizedek, Life is not certain. Anyway any day. I think you and Yaseen on basically on the same page.
Melchizedek
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@Katoomer, You speak from your own perspective, and also most people hold that view. CERTAINTY comes from KNOWING (rather, being known by) the truth, and is an aspect of maturity, in any field. For example; "A chess grand master KNOWS (is certain of) how to defeat a less mature chess player." To argue is to miss to miss the point; claiming it is not a valid point because you have not experienced it, and neither have many others. I am NOT on the same page as Yaseen, who has NOT seen my point of view, or been able to assimilate that into his own perspective, neither have you. But that's okay. If one day you KNOW HOW to forecast the precise Price High's and LOW's to the very date and time, and are correct every time; THEN and only then will you see my point about trading maturity because you have experienced it. Until then, it take faith to even bvelieve that such CERTAINTY EXISTS. I assure it does, whether or not anyone else can see it. Jesse Livermore has nothing on me, heh heh heh.