Secrets of successful forex traders: think in terms of odds
Can you become the most successful forex traders? Trading/Investing is a form of gambling, it is a betting game. According to the laws of the game, you cannot win due to the built in “odds” or “house advantage” in favor of the house. The longer or the more you play, the more certain you are to lose. That’s why I always said “Casinos are set up to make the gamblers lose money, so are the brokers to make the traders lose money!
All the most successful forex traders share the same winner perspective and strategy; they both think in terms of odds, they always ensure the odds are on their side before they initiate any actions. They don’t take action on every move, they wait for the “best timing” (with the best odds in their favor)!
Quote from most famous forex traders, John Henry
As what John Henry, the world top hedge fund manager and the owner of the Red Sox Baseball Team, said, “You don’t have to swing at every pitch. You can wait for your perfect pitch. You don’t have to trade every day, you trade only when the odds are in your favor.”
Now, a VERY IMPORTANT question about “ODDS” to be posed to our traders, I sincerely seek your participation and full support, as your answer to this will reflect how well-equipped, how soon and how readily you are groomed to become the Ultimate Forex Winner. And also how well your system have performed as your most suitable trading tool.
Successful forex traders trade only when the “ODDS” are on their side
Question: Is there any successful forex traders? Yes, there are many out there in fact! All Winner Traders trade only when the “ODDS” are on their side or in their favor! So please identify all the “ODDS” that either work for or against a trader’s favor?
1) The odds of “Minus Sum Game” is against the traders, the more you trade the more you lose. Winners trade less and
Losers overtrade. The best trading system is adopted to avoid trading excessively, thus overcoming the odds of “Minus Sum Game”, and turn it into the trader’s favor with higher probabilities and lesser risk of ruins.
2) Trading is a 50% versus 50% probability game. Practice wise money management and increase the magnitude of the trades when you’ve developed confidence on your trading system. Thus you increase the odds of reward and tilt it towards your favor. This is the secrets of forex winners that no one telling you about.
3) “Let your profits run and cut short your losses” is risky as the market nowadays is full of uncertainty. Do not increase the magnitude of the profits when you THINK you’re in the right trend. You will never know the moment you increase your lots, the market starts to turn against you.
You can list as many as you know, don’t worry if making mistakes. The more you can identify, you more certain you are to end up as the most successful forex traders. This is the best learning opportunity for everybody, especially for you and me! Please go ahead…