Let’s think for a moment, have we ever imagined how does casino work and make money? Every day, the Casino makes a lot of profit, despite the fact that the operators in the casino can not predict exactly which people are going to lose and win.
win in the casino
Come to think of it. How is that possible? Is not it supposed to be random results that can lead us to get consistent profits? And if that’s the case, should not the random results end up in inconsistent profits?
Casino can consistently make a profit because they understand that in every game, casinos have advantages that players do not know about. They understand that over time, the end result will yield consistent and predictable profits.
Like casinos, in fact, forex traders are also similar. Traders try to generate profits consistently in a market condition that seems random (random). The key is in probability.
It may seem easy to say but hard to do. In fact, to be able to earn consistently profitable trading requires 2 views that you may be sincerely, that is
1. Do trading with specific and independent
At this stage, you must understand and accept uncertainty and unpredictability in every trade.
Let’s go back to the casino example. We take the example of a popular Blackjack game. When playing blackjack, you will not know exactly what card you will get, nor do you know what cards will be performed by other players. This factor has a direct impact on our own outcomes.
And there are some who make money from playing blackjack because they understand that each game is statistically independent, if following the basic strategy, they can reduce the profits that the trader has and make a small profit.
This also applies to trading. We understand that every trade stands alone with other trades. If you win or lose 10 trades in a row, this has nothing to do with the next trade. When you can receive this, you will be able to take trades without being psychologically affected.
2. Look at the whole, not per Trade
You should understand that when samples are counted in large quantities, the probability of profit and loss is relatively stable and predictable. This certainty is a fixed variable that can be known at the beginning and most importantly, is within your control.
When you consider that each trade is independent of each other and believes that letting a good possibility run by itself, you will easily remove the emotion from your trade.
For example, you tend not to get out of trade early, if you know that your trade way has a big probability of winning.
But before you put confidence in your trading method, you must be sure that your method has an advantage over the market. Because if there is no excellence, you are like going into a casino and not knowing what you are doing.
The key to having excellence is not found on a multimillion-dollar system that he says can guarantee profit. In fact, the best traders who consistently make profits discover the benefits of their methods by consistently looking for opportunities and tirelessly polishing them over time.
And another important thing is, good traders do not depend on luck, they depend on the knowledge of their system, because they have spent much effort to make it work.