Why do professionals usually win?

A few weeks ago I shared an article about the under-appreciated and often misunderstood role of luck in our lives, and Bob Pardo responded with a great book recommendation:

How to get lucky – 13 techniques for discovering and taking advantage of life’s good breaks” by Max Gunther.

I haven’t quite finished reading the book yet, but it’s extremely interesting to read that there are techniques we can all use to get ‘lucky’. (I’m not talking about  with the opposite sex, although I don’t see why the techniques wouldn’t work there as well…)

But the book contains so many applications for traders, like this excerpt that discusses “Why do professional gamblers usually win?”

Gunther explains:

The amateur gambler hopes or prays the cards will fall his way. That is optimism, and it doesn’t win card games.

The Pro, by contrast, studies how he will save himself when the cards fall against him.

That is the single most reason why pros almost always go home with more money in their pockets than amateurs do.

See any parallels with trading?

When The New York Times asked ‘Wall Street’s Champion Trader’ Marty Schwartz how he achieved his 175% return one year, he replied with ‘I learned how to lose’.

The book has a number of other applications to trading, and a few that even seem counter-intuitive (which I may share at a later date) but I highly recommend you check the book out here.

It’s a really interesting read (it’s available on Kindle too), and who wouldn’t want to be a bit ‘luckier’ in their trading?

Plus, if you want to build trading strategies like a Pro, here’s how Robert Pardo does it.



21 March 2018

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