How to Trade Stocks (Using Probability & Edge)
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- Опубликовано: 2 июн 2024
- Before anyone starts a journey of learning to trade stocks they should embark on a study of probabilities and edge.
Stock trading is a numbers game, a game of probabilities. Once you understand how probability works in stock trading, you will become at ease with the process, your trading mindset will improve which will ultimately lead to a profitable trading strategy.
Just like a casino, by creating a small edge, thereby putting the odds in your favour, and by enough volume, the law of averages will work in your favour creating a positive expectancy.
Links:-
My Brokerage Account (Interactive Brokers) - bit.ly/3UGvn1U
25% Off Stockopedia - bit.ly/2YIcAIn
Risk/Reward trading spreadsheet - bit.ly/3ea6sl8
My Trading Spreadsheet/Calculator - bit.ly/3ea6sl8
Technical Screener - bit.ly/40S034v
Back test software - bit.ly/3oO1exN (20% Discount code)
My Breakout Scanner - bit.ly/40S034v
My Forum - bit.ly/40S034v
FREE Trading Tools/Software/Stuff - bit.ly/3ea6sl8
My Strategy Blueprint - bit.ly/40S034v
Edgewonk Trade Analysis Software - bit.ly/3xS6S7s Coupon Code = FWISDOM
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As a professional trader I have consumed hundreds of financial books and endured countless hours of self education. My hope is that this channel will reduce the learning curve duration of many aspiring traders by providing the key information in a concise and enjoyable manner.
I also offer a paid subscription service for those looking to see all my investment decisions.bit.ly/40S034v
4:29 "Each event is completely random. Anything can happen in the short term. Losing streaks and winning streaks are common, but with a large enough sample of trades the EDGE will eventually materialize."
This was very informative but newbies still must realize that the market comes with lots of risks and you could potentially lose all. Secondly, what works for A must not necessarily work for B. Always make correct inquiries before putting your money somewhere or better still, get the services of a pro (that way, you give little room for error get tailored investments and save time). Made my first million earlier this year this way. Good luck!
facts only
@Rosemarie Luiz Funny enough, I can honestly relate. It's not as easy as it may sound and requires some sacrifices but it is definitely rewarding. I don't know if I am permitted to go into details here, but her name is "Leah Marie Sandock". Was in the news a lot in 2018. You may look her up for more.
@@chrisbrian433 wow I know this little lady. Once attended a fundraiser she was also in attendance in Vancouver,, Great speaker with a funny accent,, She's American though, I doubt she works with foreigners,,,
@@queenofkatwe3990 This right here is the second time I am coming across this name in a week. Came to my school for a program and it was lit and yes, she has a really cute southern accent.
@@queenofkatwe3990 Guess she does. I am neither from there nor do I stay there hahaha.
Great video as always.
Thanks
The nearest brick and mortar casino to me is 3 hours and 10 minutes. It is what you would call a "real" casino. They have dozens of roulette tables. The minimum bet at any of those roulette tables is $25 (NOT $5. (Maybe $5 bets 20 years ago?) Assuming you ONLY have $100 to bet, you could place 4 different bets for $25 each. At $25 per spin of the wheel, you could lose your money in about 8 to 10 minutes. Good job!
It's not enough to do technical analysis to have win rate advantage. You have to backtest. It's usually because traders never backtest thats why they lose money in the long run. Even though technical analysis is widely used, theres very few who succeed
Completely agree, back testing theory has been key to my progress over the years.
How many succeed would you say?
That goes without saying. Impossible to know win rate of a system without backtesting and forward testing. Completely pointless to trade a system without testing it
There is the old say the more you bet the more edge you give to the house.and if you cannot spot the sucker at the table then you are probably the one.
Great and very informative video. I understand the concept of determining the amount of risk for a trade ( ie. stop loss point) , but how is the amount of reward determined? I don't think an empirical 2:1 , 3:1 etc, for a R:R is practical. Any ideas ? Thanks
nice video and update my knowledge. Thanks
It's my pleasure
Excellent video - Few new traders understand the concepts that you present especially the concept of expectancy. Keep it up!
Thanks 👍
Thanks Gareth. Great consolidation of basic principles. I wish I'd paid more attention to statistics at school!
You and me both!😉
One of the best that you have ever made👍
Thanks🙏
Thanks again for the nice video and update my knowledge.
My pleasure!
What is the best way to profit from the current market, meanwhile I'm still undecided about investing $40k in my stock portfolio to get some dvidends and minimize risk
Pls who is this coach that guides you? I’m in dire need of one
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Thank you very much for your education!!
Have a great week.
Thank you! You too!
In order to use risk reward ratios, would you use CFDs with set stop losses or just basic stock purchase with a sell order as a stop loss?
Cheers from Panamá 🇵🇦
Cheers from Wales!
@@FinancialWisdom great place
May I make a suggestion for next video? Stock correlation how to avoid too closely stock make all of your basket.. I personally think there is a big misconception there that lead people to consider shorting the market when it does not go as expected... But I will let you to take care about it! :-)
Really love your videos and strategy, thank you and keep it up! Btw, some content about dividends for Cashflow purpose coming?
Sure thing!
@@FinancialWisdom my strategy, thanks also your help, is 2/3 growth stocks/crypto. However I am working right no on putting 1/3 into dividends to generate some Cashflow to pay basic bills and want to start now so it really has some impact in 10+years from now.
dividend investing. Wouldn't that involve a buy and hold strategy which is not what he advises
Very very nice video sir 👌..
I love your video... ❤️
Thanks and welcome
The problem is when you increase your risk to reward your winrate reduces
Excally.
Im a forex trader and this was really good - Nice work!
Glad you liked it!
Hi..I'm a fan of your channel. Great stuff and very educational. One thing i would like to ask for your favor if you could show how to use your monte carlo analysis. I have purchased the spreadsheet but couldn't get the same result as you show in min 5:23.. thanks
Noted
Thanks for the videos.
Glad you like them!
great video as always, thanks my friend
Thank you.
Thank you! Very educational and informative.
Question -- Any thoughts/strategies on trading leveraged 3x ETFs?
So long as they are well diversified. Personally I await a minimum 25% correction before averaging into ETF's etc.
"Probably" see you soon.
You got it 👍😀
Another great video.
Thanks 👍
You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you. --Maya Angelou....
As always, I clicked the like button before watching the video.Thank you
I appreciate that
How did you calculate the edge? Because 1 divided by 38 is .02631? I don’t know how you came up with 5.26%
Hi Paul, no it is the difference between the two, it's a common mistake by many
@@FinancialWisdom thank you for the help! Love the channel! Thank you for making videos like this because it’s my learning style and you make things simple and easy!
RUclips has now added 2 or 3 ads before you can watch a video. C'm on youtube.
Yes a bit much lately...
My Breakout Scanner - bit.ly/3ea6sl8
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You keep talking about your personal style, but ended up making 26% returns in the USIC. Odd, very odd.
The understanding in this content is exceptional. A book with akin insights brought a new depth to my life. "Mastering Money Mindfulness" by Benjamin Hawk
Mark Douglas is the only reason as to why you made this video.... And he is an American.....
6:37
I make huge profits on my investment since i started trading with a professional broker Mrs Stacie Morgan, her trading strategy are top notch coupled with the little commission she charges on her trade. Thanks so much ma'am♥
With just a thousand bucks. my portfolio is worth much more now within just weeks of trading with her thanks Stacie.
I'm surprise to see others who trade with Mrs Stacie, i am currently on my 5th trade with her and my portfolio has grown tremendously
I thank you for the level-headed financial advice. I started my investment with $3,345 in just a week of trading with her I’ve gotten $7,939 in my portfolio. Thank you Ma'am
Pretty good. please how can i reach this Mrs Stacie? i want to invest i'm in Taiwan
@@anitalawrence2668 REACH HER ON HER TELEGRAM
You lose all at roulette because your line is TOO SMALL.
Maths.
That sums it up :-)
100% loose
Great video, Jesus Christ saves! John 3:16!!!
🙏
ｐｒｏｍｏｓｍ 🤭