Trade Like A Casino

👉Hindi

You must have seen at some time that a gambler plays gambling and sometimes he makes his money zero.  Many people also play gambling in trading because many people consider trading as gambling, not business.  Trading is not a gamble Trading is a big profession.  But the casino always makes profit because the casino never plays gambling, he does business, he takes out the edge in his business, edge means something that is always profitable in his business.

Can we do this in trading?

The answer is yes, if we want to always be profitable as a casino, then we also will not have to remove the edge in trading. A book has also been written on it named Trade Like A Casino by Richard L. Weissman.

You have to know about some things to get the edge in trading.

Risk per trade

RTP means that whenever you trade, you have to keep only 2% to 3% of the entire capital at a risk in a trade, that whenever you want to trade, you have to keep a fixed amount at risk. Maybe, you do not understand my point but we agree with an example, if you have a capital of 10000, then whenever you want to trade, 3% of 10000 i.e. 300 is to be kept in a trade at risk.

Hit rate / Win rate

Suppose if you make 10 trades then 5 trades out of 10 i.e. 50% of the trades go right, 7 trades i.e. 70% of the trades go right, how much __% is your hit rate.  Your hit rate is at least 50% is 5 out of 10 trades should be correct then only you will be profitable and the important thing is that your 7 or 8 trades may go right but if you go right How much is your risk and reward?  A is also very important.

Risk to reward ratio

That is, you keep 300rs on the trade risk and you take only 300rs at the time of profit and it is called 1: 1.  On the other hand, know that your stop loss in the trade is 2 rs and in front of it, you take 4 rs and exit the trade, then your risk and reward is called 1: 2.

If you do not know about RTP, Win Rate, R2 R, then you can see the complete information by clicking on it. You should know what I said above.

But the most important thing is that your win rate is at least 50% i.e. 5 trades out of 10 trades, then you must be right, and risk to reward ratio should be at least 1: 2 only then you will be profitable.

Now in your 10 trades, at least 5 trades should be correct.

Suppose you have a capital of 10000 on the risk and the risk is to keep only 3% according to the trade at risk, according to this you can put 300 rs on the risk in one trade.

Your 5 trades are wrong and 5 trades are right when you are wrong, then you lose 300 and when you are right, you are 600 in profit.

 300 * 5 = -1500

 600 * 5 = 3000

 Profit 1500

 We are not counting the commission here, because when your capital will be big, around 1 lakh, then this commission seems very low in front of the profit.

 You may feel the profit of 1500 is very low, but even if the capital is less, according to the amount (%) in every 10 trades, 1500 profit of 10000 capital is 15%.