Do you want to trade like a casino? Do you want to always be profitable? Then our today’s post is for you. Our today’s guide on how to trade like a casino will demonstrate how you can make consistent profits as a professional trader.
As we all know, the trading arena presents a lot of complexities, risks, and above all uncertainties. That is why people don’t believe anyone who claims to make consistent earnings through trading. Moreover, people also blindly believe in myths about trading because of these challenges presented by trading. For example, people consider trading highly risky. They also believe that making money in this arena depends on luck. You may even come across people who consider trading as gambling.
These myths are true up to a certain extent. Although trading is different from gambling still they can be compared. For example, both trading and gambling involve a lot of risks. However, there are huge differences. Gambling involves using games and depending on chances to win. It doesn’t require any skills and knowledge. Contrarily, trading is something that requires a lot of qualities. For instance, you need skills, knowledge, and experience to be successful. There isn’t a game of chance either in trading.
Moreover, if we look at gambling, the player always loses in the long run. It is the casino that is destined to be a winner. Why? Because the casino has an edge over players. So, is it possible for traders to make profits consistently? Is it possible for traders to trade like casinos with a 100% winning rate over the long run? The answer to these questions is yes. It is possible for traders to trade like casinos and make consistent gains. But, it requires getting an edge over others. Let’s dive deep into the picture and see!
How to trade like a casino and be 100% sure to be profitable?
Firstly, it is important to understand the question. Why are we talking about trading like a casino? Because casinos are always profitable at the end of the day. They always make profits no matter what happens. That’s why you will find casinos offering free food, drinks, and entertainment. These are just small offerings to entice people to the house. When more people come to the casino’s floor, the more they lose, and casinos make more money. Do you ever think about what casinos have that consistent gains lean their way? That’s exactly what you need to know in order to trade like casinos. But, firstly you need to know why most of the traders lose their money in trading?
Why do traders lose money and can’t trade like a casino?
The answer to this question lies in understanding how casinos make money? Casinos make money because they have a game plan. People think that both casinos and players have a 50/50 chance of winning or losing. However, this isn’t the case. For example, if we take the example of roulette, casinos always have an edge. If a roulette has 10 red numbers and 10 black numbers, it also has 2 green numbers as well. That means, their chances of winning are higher. Players have 10 out of 22 numbers. Contrarily, the casino has 12 out of 22. Having said that, casinos will always be profitable at the end of the day.
How to trade like casinos – Tips to follow
If you aspire to trade like casinos and be profitable at the end of the day, follow the following tips. All the successful traders follow these tricks and make a lot of money.
Tip#1: Have a proper game plan
Let’s now look at the trading arena. Most people lose money because they don’t have such a game plan. Traders are doomed to fail if they don’t have a proper plan. Most of the traders even enter this arena based on tips, assumptions, or opinions. Some traders are also prone to making decisions based on rumors while some are led to catastrophe by their own emotions. It all happens because of the lack of a proper trading plan. Conversely, traders who always follow a proven trading plan, always make money. So, if you have a backtested plan, stick to it to make money.
Moreover, a proper trading plan and strategy helps you control emotions. It is a fact that emotions are an important aspect of a human being. However, there is no place for emotions in trading. Emotions even lead to FOMO trading. You can become a disciplined and successful trader only by keeping your emotions at bay. And the only way to do it is a game plan.
Tip#2: Follow patterns
Financial markets are unpredictable. However, you always have patterns to follow. For example, candlestick patterns help you understand the market. Price action patterns always highlight the way the market is about to go. So, it is imperative to understand patterns to trade like casinos. If you follow patterns, you will always be profitable at the end of the day.
Tip#3: Manage risks
Risk management is also the key to trade like a casino. Those who don’t manage risks properly, lose a lot of money. Therefore, it is crucial to managing your risks. You can choose a risk/reward ratio according to your risk tolerance capacity and stick to it. For instance, you can follow a 1:2 risk/reward ratio. It indicates you will make a $10 loss if you are wrong. Conversely, you will make a $20 profit if you are right. That is how you can manage your risks.
How to trade like a casino – the wrap-up
Experienced and successful traders have three things in common. Firstly, they follow a winning strategy or a plan. Secondly, they follow patterns and don’t trade blindly or based on assumptions. Thirdly, they manage their risks properly. These three things are the keys to successful trading. Therefore, if you aspire to trade like a casino, adopt these three ideas and start making profits consistently.