Trading Without Gambling

What this book is all about is how to reduce the gambling aspect of trading.
Many people perceive trading as nothing more than a gamble. And to
many traders it is. But there are many traders, who year after year and
month after month make money trading. They have learned how to separate
gambling from trading and their results show that it is possible to
do. I believe anyone can do it as well if they are willing to do the work
it takes. For me, that hard work is developing and trading with a plan.
There is probably no greater tool you can have then a proper, well thought
out plan.

When I talk about plans I refer to two types, the trading plan and the
game plan. Though they work together, they are two different creatures
that rely on each other to work. A good trading plan with no game plan
won’t work.

That’s like Pedro having the best fastball and curveball in
world but not knowing when to throw them or who to throw them at. On
the other hand, without a trading plan, a game plan is not nearly as strong.
It’s like Pedro deciding he needs to throw a knuckleball in a tough situation,
but realizing too late he never learned how to throw one. But once he
gets both of these plans working together, he can win a lot of games and
be the superb pitcher he is.

This holds for traders as well. The main reasons for having these plans
are to ensure you make smart trading decisions all the time, to help you
exit a trade and to make sure you know what you are risking and how
much you stand to gain prior to making a trade. Without the aide of plans,
you are starting behind the eight ball. Your chances of succeeding are so
much smaller if you are trading haphazardly, as opposed to when you have
a proper plan to guide you.
Throughout this book you will see just how
important a trading and game plan will be in making you a better trader.
I’ve traded with and without a trading and game plan, and I know for sure,
my results are exponentially better when I have the guidance of a proper
plan behind me.


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