In the stock market, there are 'gamblers' and there are 'casinos'. Gamblers depend on luck to make money and would eventually lose it all, because the game is rigged against them. 'Casinos' know how to rig the system to generate consistent profits from random outcomes of chance. Learn how to trade like a casino!
These are essential stock trading strategies for stock traders and investors who want to improve their investment and trading performance.
Adam Khoo is a professional stocks and forex trading and the best-selling author of 'Winning the Game of Stocks" and "Profit from the Panic". Thousands of students have profited from his sharp investment insights into the world of stock investing and trading.
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There are slippages when trading in stock market as well (equivalent to the green numbers), ie, bid offer spread and commission. And when gambling in casinos, one also look at "trend" and not exactly blindly. Therefore, in conclusion and in my opinion, it is the same.
If a player at the casino has 47.3% probability and players win 47.3% of the time. I think they win more money than they put into the game because no one will play a game in which winning percentage is 47.3% only and even after they win the will get only their money back. I think casinos work differently, I am not sure how but I think it does
Traded for 8yrs. Used every kind of "profitable system" imaginable. Market makers know where stop losses are and spike prices to trigger stops many times before price moves in favor of your trade. After going bankrupt 3 times and almost ending my life, I decided to quit trading 4yrs ago. Took a job, downscaled my expenses, started saving every week. I'm a much happier person now with normal blood pressure and far less stress and I have some money in the bank that is earning some interest. Life is so much better now... just a thought.
imho stop losses are not the pro solution.. you should be buying the stock and protecting it with a weekly put option. Lose small, win big, and no risk of getting kicked out of a stock that momentarily dips down and goes back up. With a put option, you always know what your maximum loss is
I enjoyed you video. There is still a lot to learn beyond this, but especially for beginners, this is crucial knowledge.
I trade Foreign Exchange. My win rate over the past year is almost 300%.
It should be noted that I was completely stupid when I started trading Forex, almost 10 years ago. I lost over $48,000 in under a week once when I thought I'd "figured it out"
Even though I've done well for myself, it took me the past 4 years to create my own system, and actually stick with it.
Emotion is ALWAYS a factor.
In the beginning, I was going for fast gains and lots and lots of trades. However, it took many years for me to realize that the real gold (at least for me) was in spending a few days (or sometimes a week) doing analysis on a pair before putting my trades/orders in.
I also scrapped short-term gains/scalping, and went for longer-term trades after my analysis.
Most of my trades are probably 4-6 weeks before I hit my TP.
The system I use slowly covers losses until a direction change, and I'm quite happy with it.
My percentage of winning trades may vary, because my technique includes sometimes multiple trades that cover my losses for a final, large payout. I do not hedge, either.
Anyhow, my suggestion to all, especially new traders, is create a system, stick to your system, and try not to be too emotional.
I'm in the middle of creating software to mimic my system so I don't have to worry about the emotion. I'm looking forward to that.
Also, use a demo to test your system until you realize you have something worth your real money.
Happy trading all!
Sorry with all my repect this is only half of the game.... There is something missing in your strategie.... You say this works on 100 trades or 1000 trades. You actually said you make 20 a month then takes time for you trading 100. Good.
It is only work if you play everytime time same 10€ trade everytime.... If you trade 1000€ once in trade you deeply believe in and for all reasons, analyses and everything make you trade... You busted..
how many 10€ trades win 60% garanti to get your mega stop lost back ???
you forget the speculation.... This is not indicator to trade with.
Sorry i am not agree about this and this is lying to people.
Hello Adam, this vid was made about a year ago. Hope this still matters, cause to me it does. You have good insight about trading. I think we need to change the word "rig" though. Some word might be more appropriate. Thanks for sharing.
If your stop loss is too near the entry price it will be hit every time. That means 0%wins to 100% losses. Putting the just under/over support or resistance will get you stopped out a good percentage of the time.
Don't you spend 100 to lose 50 and win 100? Doesn't this mean that you lost money since out of 100 you invested you lost 50 over all? What am I missing? If I'm reading this right, with this system cost to play annihilates your winnings.
To avoid 7:05 you should perform some fundamental analysis of the economy, industry, company and then time the entry correctly using TA. Otherwise it sounds just like a random position, which is totally casino and you will lose money like that
You don't need any more explanation than this but I know beginners will miss a couple of points here and they are: 1) Number of trades he makes per month ( not playing with the system like a computer game but applying strategy), and 2) not recognizing losses when they occur are in the strategy (rage quitting).
good old days are over...
You want to win today, you need to have a Big Account.
growing rates like Warren Buffett had in his old days are over.
Only emerging markets; but therefore you must be a professional.
Your presentation is really very nice. I think you are a professional instructor apart from a professional trader. Because of your admiring way of explanation difficult things I think I might addict watching your instructional videos whether I am trading or not
Mathematically you are right...but on real life when the trader starts on a 4 to 5 or more losses in a row, I'm prety sure he/she will start taking it's profits before the 2$ and then the 2:1 gain:loss rule goes down the toilet flush
Duh... that is why professional traders place stop losses at areas away from where normal retail traders place them. In my trading strategies, I place stop loss only AFTER stop losses have been hit and taken out by market makers
Oh, my God! 2 minutes into the video and I feel pain. Money, money money...... BRRRRR.
I thought this video would explain how building of casinos by native Americans is a money laundering.... My bad....
He is partially right but he can go deeper. The ONLY THING MATTERS in trading profitability is EXPECTED RETURN. You can tweak the equation any way you like in a way that it comes out positive.
Scenario A: You win rate is 85% and you make 1 buck when you win, you lose 4 bucks when you lose. You still in average make .25 for every dollar you bet.
Scenario B: You win rate is 25% and you make 6 bucks when you win, you lose 1 buck when you lose. You still in average make .70 for every dollar you bet.
In real life, you want a strategy which has an OK winning percentage. It is hard mentally if you have a low probability win rate even if it has huge expected return. But the irony is that those strategies are sometimes the most profitable ones. Meaning that you may have to accumulate so many losers feeling like a moron until a home run. Beginners should start with a strategy with a decent winning percentage.
Great video! However, the math at the end (two last trades) does not sound right to me. At 15:42 you say if you're betting 1$ for trade you have 80% return but for the numbers you've chosen, if you put in 100$ and take out 120$, the profit is 20$ (not 80$) and consequently the return rate is 20%. Obviously, that would require to use leverage and/or to modify the previously given stop loss and take profit numbers or price per share. Similarly, at 16:35 if you put in 100$ and take out 100$, the profit is null. Am I wrong?! Either way, the explanation of principles is outstanding. Please keep up the good work. Thanks!
Adams, your presentation is excellent, but...
The risk reward ratio have your own statistic (2:1=-50%)... if you put the tp on 20 pips and the SL on 10 pips, the statistic is: it hit's 2 times on loss and 1 time on profit... The loss is -2USD x 2 = -4USD and when you hit the profit is +1USD... If you have an advantage of +20% (tech analysis), you win +1,2USD and you have a total loss of (+/-) -3.4USD... In the end, you lose on a complete turn (+/-) -2,2USD(simple calculation mode).
On the other hand, if you have 100USD and win 50USD, you have 150USD, +33%... When you loss 50USD on 100USD, you have -50%... Then, the loss with the same size of the win is much bigger... You have to win 3X to compensate a loss of 2X in 1:1... You can try 2:1 instead of 1:2 RRR... Please, take in consideration too, a 50% average volatility of each movement when you calculate the range of the RRR(reverse price)... This is gambling! :)
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