Learn Why Successful Traders Think Like A Casino
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Transcript of Learn Why Successful Traders Think Like A Casino
They might have a very effective and profitable strategy
This is called'chasing performance'
and is a trap that normally leads to more
losses
The trader waits to trade until there’s a
win streak
The next series of trades are all winners
Most of us have been there and done that
Tweaking or changing the rules so that the losses would have
been winners
Any rule that a trader comes up with is bound to have
incidents where it just isn't going to work
Do you think governments are
going to allow us to mint money?
More likely we'll be paying you a visit
while you're breaking rocks in Leavenworth!
Trading has inherent risk
Curve Fitting
As soon as you change the rule, you will lose
again while the original rule would have won
The typical healthy growing equity curve
will go two steps forward one step back
The performance chaser waits to trade until he
has just seen two steps forward occur
Constantly on the wrong side of the
curve
This is completelyavoidable and yet it
still happens too often
They give the power of the 'odds' the time it
needs to work
It’s Simple!
It is one of the many strategies successful traders use to remind themselves how profits
are made in trading
What good is having an edge if you don’t let
it play out?
The best strategies will still lose money
Curve fitting just keeps the losses coming
What does perfect mean?
Does it mean being able to execute trades
perfectly?
SurrenderAccept
Focus on what it really takes
Focus on beinglike the casino
Like any business, trading is a
numbers game
Establish a statistical advantage and then go about taking the trades
Losing traders focus on avoiding losing
trades
This will give you the ability to stay in the
game and keep taking the trades
Powerof
Compounding