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Re: Applying Poker Strategies to Trading The Markets
That being said, The Theory of Poker by David Sklansky stats that a poker player gains an edge each time he plays his hand correctly each and everytime if he knows what hand you hold. Whether that may be betting, raising even folding.
Now if you apply that same principle to trading as to what the "pros" are doing, you can see how they have an edge on us smaller players, but if we think like a pro, we too can take advantage of that edge.
I am sure we've all had losing trades in our early days. Just think what you we're going through when you went long the break of the high of the day, only too see prices drop like a stone? There is a very good chance that break out was on light volume because there was no "professional" money involved with the push. Now once that pattern has been identified on the "battlefield" in real time, step up and enter your order.
Understand and implement the psychological part of trading and the rest should be easy.
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