I wanted to discuss an issue I see often with new traders in our classes. Many new traders feel they need to make as many trades as they can in order to be successful. This couldn’t be further from the truth. In fact, trading is all about finding the trades with the highest probability of success. If I asked you to place a Rs. 100 wager on one of two games of chance, which would you choose?
If you chose Game A, after 10 tries, chances are you would be even, (Rs.100 wager lost on all games and only one Rs. 1000 win). After 10 tries with Game B, you would profit Rs. 1000, Rs1000 wager lost on all games but Rs. 2000 won). The market offers us the same choices daily. We can try for a big payout with low probabilities or play only the high probability trades that will allow us to make consistent money in the markets.
This brings me to the OPS. OPS… Continue Reading
