I have discussed for a long time that commercial stocks and gambling are very similar. This does not mean that you should stop trading stocks, it just means that you need to understand something about the probability of winning when trading stocks. You need to learn how to put odds in your favor when investing in the stock market.
We exchange order. It is a very good system and is constantly returning to more than 100% per annum on our investments over time. But this may sound good if we have tested our system in many markets over many years, including nearly 10,000 trades, and we only win about 56% of the time.
I have been studying these market statistics for nearly two decades. Without making an argument here, I will simply mention that since market movements are often random, the trading system can not be expected to be better than 60%. If someone boasts that he has a trading system or that he can predict market behavior at 90% accuracy, I suppose they are either stupid or charlatans or both 더킹카지노.
So we are working with a system with a accuracy of up to 56%. In this article I will explain how a system with 56% precision can still make a lot of money and do so with minimal risk. In order to do this, I will compare stock trading with casino gambling with one important difference: we are home!
In order to understand the side of the casino from my argument you have to understand at least one casino game, roulette. The roulette table contains 36 numbers, half red and half black. It seems that if you put $ 10 on a single number, the chances of your loss will be 36: 1. But you may lose several times and still break, because the ball will eventually fall on your number and the house will pay you 36: 1 or $ 360.
However, there is catch. If you check the roulette table, there are only 36 digits, there are 38 numbers. There are actually two more openings, Green, 0 and 00. When the ball lands on one of those openings, the house gets everything.
How does this change the odds? What this means is that the home advantage on the roulette table is 5.3%. What means a 5.3 percent home advantage is that the home will achieve $ 5.30 for every $ 100 bet on the roulette table.
No one can win the roulette game if they continue to play. Over time the house wins and will always win $ 5.30 for every $ 100 bet.
Well, now if we trade stocks how do we become home? We have become home through a precision trading system that wins steadily by 56%. This naturally assumes that our average operations and our loss rates are almost equal. If our system is 56% accurate, our home advantage is 6% and we will make $ 6 for every $ 100 bet.
Now that we have learned how to trade? Obviously we need to trade a lot. Our profits will be a percentage of the amount we bet on, so we want to bet a lot. At present we trade in 96 market. We usually get in one day and go out the next day. We probably get about ten deals a day, but each of them has a 56% chance of winning. We make money well with this strategy. We are home.
I will give you another extreme example of my past business. During more than two years, has made more than 5 million dollars of profits, traded about two million profit. I’ve done more than 11,000 deals, and the average trading was only $ 385, but I paid nearly $ 2 billion through the stock market with all that trading. You can earn a lot of money with a low house feature when you take a percentage of two billion dollars!