It sounds negative if we associate trading the market with gambling. However, there are certain important things we can learn from gamblers and casinos.
The first fact we must establish is no one knows the future. Yes, some traders will argue my strategy can predict the market however lets put this discussion in another article and imagine that no one knows the future and how can we have an edge if no one knows the future. A fun way is to imagine yourself as a gambler or owner of the casino how can we win consistently in every game?
Try to think about it if casinos were unable to win consistently, they will be filed for bankruptcy and there will be no casino in this world. The trick is simple, that’s by calculating the odds in their favour.
When it comes to trading the financial market, it is the same concept where you do not have to win every trade, you just have a calculated strategy that clearly understands the strategy and has a winning odds over a period of time. We call it a probability-based trading strategy.
Once you have this strategy all you need to do is make sure you execute it whenever the signal comes and let the odds take care itself. Therefore, if you were still losing money in trading the market you should first focus on developing or leaning a winning probability-based trading strategy.