I accept argued for a continued time that trading stocks and bank are actual similar. That does not beggarly that you should stop trading stocks, it alone agency that you charge to accept something apropos anticipation of acceptable if you barter stocks. You charge to apprentice how to put the allowance in your favor if advance in the banal market.We barter a system. It is a actual acceptable arrangement and it consistently allotment in balance of 100% anniversary on our investment over time. But as acceptable as that may complete if we analysis our arrangement in abundant markets over abounding years involving say about 10,000 trades, we acquisition that it alone wins about 56% of the time.I accept been belief these bazaar statistics for about two decades and after presenting an altercation actuality I will accompaniment artlessly that accustomed that bazaar movement is predominantly random, no applied trading arrangement can be accepted to do bigger than 60%. If somebody brags that they accept a trading arrangement or that they can adumbrate bazaar behavior with 90% accuracy, I accept they are either idiots, charlatans or both.
So we plan with a arrangement that has about 56% accuracy. In this commodity I will appearance how a arrangement with 56% accurateness can still accomplish bags of money and do it with little risk. In adjustment to do this I am traveling to analyze banal trading with bank bank with one cogent difference: WE ARE THE HOUSE!In adjustment to accept the bank ancillary of my altercation you accept to accept at atomic one accepted bank game, roulette. The roulette table has 36 numbers, bisected are red and bisected are black. It would arise that if you put $10 on one amount that your allowance of accident would be 36:1. But you could lose abounding times and still breach even because eventually the brawl will abatement on your amount and the abode will pay you 36:1 or $360.HOWEVER, there is a catch. If you appraise the roulette table there is not just 36 numbers, there are 38 numbers. There are in actuality two added slots, both green, 0 and 00. If the brawl acreage on one of those slots the abode gets everything.How does this change the odds? What this agency is that the abode advantage at the roulette table is 5.3%. What 5.3 percent abode advantage agency is that the abode will accomplish $5.30 for every $100 bet at the roulette table.No being can win at roulette if they accumulate playing. Over time the abode ALWAYS wins and they will win $5.30 for every $100 bet.OK, now if we are trading stocks how do we become the house? We become the abode by trading a arrangement accurately that consistently wins with 56% accuracy. This assumes of advance that our boilerplate wins and our boilerplate losses are about the same. If our arrangement is 56% authentic our abode advantage is 6 % and we will accomplish $6 for every $100 bet.Now that we apperceive that how should we trade? Well acutely we charge to barter a lot. Our profits are traveling to be a allotment of how abundant we bet and so we wish to bet a lot. Presently we are trading 96 markets. We usually get in one day and out the next. We apparently boilerplate about ten trades a day, but anniversary one has a 56% adventitious of winning. We accomplish acceptable money with this strategy. We are the house.
I will accord you addition acute archetype from my trading past. Over a two year aeon I fabricated over 5 actor dollars profits, trading an annual of about 2 million. I fabricated over 11,000 trades, the boilerplate barter was alone $385, but I pushed about TWO BILLION DOLLARS through the banal bazaar with all that trading. You can accomplish a lot of money with a low abode advantage if you are demography a allotment of two billion dollars!So how do you become the abode if banal trading? Well aboriginal of all overlook about brokers, banking experts and banal pickers. You charge a solid computer-driven trading arrangement that you accept activated with abounding markets in abounding altered bazaar conditions. You wish to see accurateness amid 50% and 60%. If its added than 60% there is a botheration with your abstracts or the arrangement is a hoax. You charge to alter beyond abounding markets and you charge to barter a lot.And if you do all those things you can run your own Wall Street Bank and become rich! You are now the house!