Hidden Odds of Trading. Are they Any?

[milkymo]

This technique works, it's called card counting and others have used it to win in blackjack also. By placing maximum bets on all the hands played they controlled their losses. When the cards left in the deck were in their favor they would place large bets and win most of the hands. in the course of this streak of winning they would make up their losses and turn a profit. When a brand new stack of cards is brought out to the table they would leave and cash out because with the introduction of a brand new stack of cards the odds swing back in favor of the house.

 

someone who is vaguely familiar with betting knows that the house has the odds in their favor. Do some people leave a casino with large winnings? Yes, but that's because they left before they lost it back to the casino. in the event that they had won and then continued to play long it is a mathematical certainty that would lose all of it back to the house. I watched a program one time about a group of students from MIT that had developed a technique to beat the odds in blackjack. The program said they had won large amounts of cash before all of them were blacklisted from the casinos. The technique they used involved waiting to place large bets only when the cards were in their favor.

 

in the event that they had stayed for more hands they would have slowly chipped away at the winnings until it was gone. In trading the house doesn't exactly have odds but commissions and slippage amount to odds against you. in case you are new to trading you are probably thinking that commission and slippage aren't that large of a hurdle. Well, I tracked it one time in my account, at the time I was two times daytrading. After five months I had lost more to commissions and slippage than I had lost on losing trades. Also keep this is mind I only traded on average 3 times per day and had a profit 66% of the time. in the course of that five months I had only realized an increase of 5.5% in my account balance.

 

Now that would be fine in case you are trading a million dollar account but I wasn't. At the time I attempted to fix my technique which ended in catastrophe because I began to over trade which resulted in more losing trades than winning trades. What I failed to recognize was that my winning technique did not want to be fixed my cash management skills did. Later when I realized that cash management was the issue I went back to my old technique with a few changes to the cash management rules that I follow and performed much better. in case you want to become a better trader focus on the cash management side of your trading. The markets go up, down, and sideways you cannot control the market. they must focus on the things they have control over and cash management strategies are a lovely place to start.

[senger]

Do not have the to hide for the rest of the traders, but there are many experts who have a lot of people hid from the rest of

[flybiz08]

Your view about forex trading is one of a game where traders are gambler and applning gambling principles in forex, they will succeed. You're wrong. Forex is not gambling and it requires skills which is the most difficult part of it all. I'd advise all traders to develop their trading skills than to think that forex is a game to gamble.

[PROPENSITY100]

The rules that apply to blackjack do not apply to Forex as Forex is not a game of cards. In Forex we have various charts and indicators to help us predict the market trend. Proper knowledge and trading skills are thus essential to win in Forex trading.