Learning to Trade: Lessons from a Blackjack Guru
October 21, 2020 (Investorideas.com Newswire) Trading, when done correctly, can be a profitable venture. Whether you are a forex, crypto, or stock trader there is a potential to gain real returns. While the benefits from this endeavour are life-changing, the potential pitfalls are equally daunting. Many traders spend thousands of dollars looking for a fix-all strategy that will win them millions in a short space of time. Many strategies have been proposed by self-acclaimed aficionados to guarantee profits. But is this the best way to learn how to trade?
If you ask the top retail traders in the market, they will tell you anyone can make money trading. The markets are forgiving, especially if you trade with the trend. So why do most people lose money when they trade? Why is it difficult to find consistency? The reason is simple, because trading, in the main, is very boring. It is a waiting game, waiting for the ideal setup and staying away if things make little sense.
In the microwave economy, we are in today, few people have the discipline to stand still when the market is not right. It requires discipline for you to stick to a plan, even when everyone else is telling you to do the opposite. Nowhere else can you learn this skill better than when you are playing blackjack online - You can find plenty of sites offering free blackjack through Gamble.xyz. In this article we look at lessons traders can glean from how 21 is played.
Learn the Trade
Blackjack is an exciting casino game enjoyed by many people across the world. Unlike other casino games, online slots or scratch cards, for example, it is a game of strategy. This means your actions during the game have a direct bearing on the outcome. So, it is a game where the faithful student can develop their skills. Most novice traders and blackjack players alike fall into the trap of starting with no knowledge or training. Now, we are not advertising ten thousand dollar courses here, but a basic knowledge of how and why the markets move is invaluable. Too often, the excitement of getting paid in the comfort of your home veils the hard work that is required to be successful at trading.
Have a Strategy
Not having a strategy is one of the surest ways of blowing your account. We know this is not the first time you are hearing this, but it would surprise you how many people flout this advice. All successful blackjack players use some version of basic blackjack strategy. Some even take it further and learn to count cards, but no one sits at the table with nothing but luck on their side. If you do this, it is your prerogative. But from our experience, it does not work in 21 and it won't work in trading. So you need to ensure that you have a strategy coming in and that your strategy has an edge.
It is a Duel of Emotions
Top casino players have perfected the art of controlling their emotions. Faced with heavy losses or magnificent wins, you need to cultivate the same skill. It will not be easy. Like most skills worth gaining, it will take some effort. But once you have it down, it will make your life a lot easier. Trading is never a sure thing. If you find anyone who tells you otherwise then, they are lying to you. It comes with difficulties that, if you are not careful, can even lead to serious health problems. So the skill to ride the current will prove invaluable. You need to treat your wins with the same disdain as you would the losses, be indifferent.
Cover the Downside
It is easy to feel like superman when everything is going your way in a game. You feel you cannot lose and every hand you touch turns to gold. This is a dangerous period because it is usually when all caution is thrown to the wind. You need to always protect yourself from the downside. This is especially important when you are dealing with high volatility markets. A pro trader move is to always have a stop loss. Proper use of this feature will protect your account from heavy losses and ensure that you live to fight another day.
Trading like blackjack has a lot to do with psychology and controlling your emotions. If you can master this, you are on your way to being a profitable trader.
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