So a lot of people will say āTrade like the casinoā. When they say this they mean have a small advantage and Casinos win more than they lose, such as if you go play blackjack. the casino has a 51% chance of taking your money while you only have 49% chance. And with that 1% advantage Over years and years, thatās a great advantage.
This way of thinking is not that great in my opinion.
INSTEAD, I want you to trade like the person at the slot machine. Now I know what youāre thinking, āSo just throw my money in the machine and press the button and watch my money drain based on randomness?! No thanks!ā
No. What I mean is, āWhy can a person go and put $100 into a machine and you never see them get emotional when the balance drops and drops?ā
Itās because they donāt know if that next spin will be a winner or a loser!! They are not emotionally attached to pressing that button.
But as traders our we get emotionally attached to trades. Our egos wonāt let us be wrong! We canāt takes losses, but I want you to change your way of thinking.
The best part about trading is you can have a strategy, at the slot machines there is no strategy. But I want you to approach every trade like that person at the slot machine. Taking a trade and letting it do itās thing based on your strategy. Not all your trades will be winners thatās just facts. But can you lose a trade and press that button again? Will you double down, will you set a stop? Will you Margin call, get mad and blame the markets?
I could go deeper into psychology but hereās just something small to think about. Hopefully itās helps you, if not thatās ok, live by your rules. Set your own standards! Good luck in your journeys.
I prefer to trade like a sniper. Look for those high probability trades with plenty of volume and moment and pull that trigger the moment that the signal is just right.
I personally do not like such analogies at all. It doesnāt look promising at all. In this case the business will turn into a game. And it will definitely not lead to anything positive. At least this is my feeling.
To use another analogy I liken it more to value sports betting. Providing you place value bets (where you have a long term edge) then you will make money long term but there will be losses along the way. By taking value you simply flip the bookies overround in your favour. At least until they ban you!
You talk sense, bro. I was playing on slot machines quite a lot of the time and can say that itās mostly about your luck and not strategy. Surely trading and casino are two different things and there is no point in comparing them. For example, I had a great luck of getting huge house of fun casino freebies and surely thatās not because I was producing big strategies, lol. By the way, I manage to win quite often, and I wonāt say that Iām putting any strong efforts into it. āTrade like a casinoā is, of course, a false statement.
Slot machines were Very kind to me as a āfirst timerā - Never won anything - therefore didnāt build up an addiction. I had Two mates who would sit and watch your guy put his$100 into the machine - then go and play it for a few diollars (Ā£s) and almost invariably pull a decent payment ! (Contrarian Trading ?) - then, when trading some people are more happy with this method ;
To me it IS a game ! - The object of a āGameā surely is to WIN !
The analogy of teh Casino - I think is appropriate - the house āedgeā is Always against the trader - but the difference is the next āRoll of the diceā is Not Always ārandomā and whatevr methodology suits your own psychlogy least badly - Those are the ārolls of teh diceā we are looking for
Great insight being mentioned here.I totally agree with the āno emotions attached mindsetā and that one should invest those emotions to having faith in the market and that probabilities shall play in oneās favour in the end.
Lol Yea I totally agree with you once more.To ease perception of the reality I highly recommend reading āTrading In The Zoneā by Mark Douglas. The whole book is a trading coach/mentor itself regarding trading psychology and there is an activity in the final chapter that will facilitate you in measuring oneself trading goals and journey.
This is actually really good and helpful! It doesnāt matter if youāre trading or gambling, thereās always a risk. Of course, when it comes to trading, the market is way different and you have to know more information in order to get everything right. Gambling is a different story. Iāve met many people whoāre actually making a living out of this, but I donāt know how this is possible. Iām playing on ģ¹“ģ§ė øģ¬ģ“ķø with a couple of friends for fun, but Iāve never managed to win absurd amounts of money. Everything that Iām doing itās just for fun and thatās it
In the foreign exchange market, there are āgamblersā and āprofessionalsā. Gamblers make money by luck and end up losing everything because the game is against them. The āprofessionalsā know how to manipulate systems to produce consistent profits from random outcomes.
Itās important to remember that while trading and gambling both involve taking risks, they are very different activities. In trading, itās important to have a strategy and to manage your risk carefully. Gambling, on the other hand, relies more on chance and often involves making emotionally-driven decisions.
Most private retail traders are gamblers but just donāt realise it.
When you see a chart with a consistent long-term uptrend you will usually find the brokerās sentiment indicator shows that the majority of their clients with open positions in that pair are short. This is purely the equivalent of betting on black on the roulette wheel because red has already come up 30 times in the last 40 spins.
So yes, a lot of traders do indeed trade like a casino, but they are going to lose just like everyone else who plays roulette.
