Being Steve Wynn
Trading has often been compared to a Casino and for good reason. Most investors throw their money in the market without any real thought or plan. Might as well go to Vegas, at least you'll get free drinks. The best Traders in the world are only concerned about Risk/Reward and putting the odds in their favor. They are also not worried about being right on every trade as newer Traders are. Here's an example of two different Traders and their last 10 Trades. Which one would you rather be?
Trader 1 Trader 2
Success Rate: 80% Success Rate: 50%
Profit:$175 Profit: $1175
Trader 1 might feel as if he is doing well as he is 'right' 80% of the time but only manages small profits and the odd bigger loss.
Trader 2 is only 'right' 50% of the time, which in school is an F. But when the market proves him right he let's profits run to pay for his losers and then some.
The odds on most Casino games are just over 50% in favor of the house and so they know over a large number of hands dealt they will profit. Don't expect to profit on every trade. Just expect that your strategy will be profitable over a large sample size.
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