One Conventional Trading Wisdom Might Be Wrong All Along
Wisdom on Conventional Trading
Whenever we begin on a journey of trading or betting on Betfair, for example, we always read up on information about making actual trades and how to get profits. There are certainly many educational books out there and they probably contain a lot of good information as well to learn such thing as how to trade online.
One common wisdom about trading and betting that was passed around since time immemorial is “Let your profits run and cut your losses short.” Although that has worked numerous times before, in actuality, the advice may not be too good for you in the long run.
Shocker, right? But before you turn away, please hear me out. When you really look at the market using some unbiased lens, you will find that there really is no way for you to “run your profits and cut your losses”. It is either you cut your profits or your cut your losses, but you can’t have your cake and eat it too.
The reason why that common nugget of wisdom is wrong is that markets and betting exchanges just do not move in a linear fashion. In other words, it doesn’t move on a straight line, but rather, it follows a wave-like pattern where there are times that the market is experiencing an all-time high and there are times where the market moves downward. It is never a constant thing.
Anyone who refutes this statement is just a lucky bastard. It is that person that just “lets his profits run”, making decisions based on luck and not really based on real market data.
It is that kind of person that basically wins their trades without really looking at what is happening. Although it can certainly happen, it doesn’t happen to a lot of us.
Professional trading gurus might be in aghast after reading my statement, but it is actually true. Yes, their knowledge and wisdom might apply when before the actual trade or before the actual bet, but rarely does their knowledge ever succeed after the trade or the race is done.
What is the Best Possible Solution?
So now, you’re asking yourself, “what could be the best possible solution to getting profits in trading, then?”
Well, the answer is really simple and it is something that you might not have initially thought of when you think about trading.
The answer is simply to take your wins as quickly as possible. The reason is that winning in betting exchanges on in the stock market is not all about earning money; it is about not losing it.
If you win a trade or you win on a bet, you have to get your wins as quickly as possible and do not wait for the perfect time. Otherwise, you’re going to lose by not getting any profits at all.
When it comes to this, waiting doesn’t necessarily mean that you’re going to ultimately win because as I’ve said before, the market just doesn’t move in a linear fashion.
So whether or not you’re going to follow conventional wisdom or you’re going to take my nugget of truth, the decision is entirely up to you. After all, trading is all about making decisions, right?