Trade Like a Casino, Not a Gambler
- #423
- Sep 2, 2025 12:04am Sep 2, 2025 12:04am
- Joined Apr 2025 | Status: Trader | 1,220 Posts
only this news has the capacity to dip gold for a few candles on h1 {image}
[I wrote this in the Gold Interactive Forum a few days back, before I was debarred from writing there. Copy Pasting it here for interested people 
]
How to insure that you never lose money in trading :-)
There is one thing you can do, irrespective of your Entry methodology that can ensure that in the long run (50-100 trades, with the same methodology) you don't lose money. It is valid for all short term trading, short would be day trading/days trading. Its a simple idea but if you follow it, it can make sure you don't blow up your account ever.
Rules to follow is :
1.Never increase your initial SL ever.
2.Systematically decrease your initial SL whenever your trade moves in profit.
No matter what your entry criteria is : Fundamental, News, Technical, Mathematical, Astrological, Random, Emotional... if you just follow the above two rules, you will magically find that after a some number of trades (50+) you will always be not in loss... (and in good profit if your entry criteria has some edge)
Rule 1 is fairly obvious, as far as Rule 2 goes, the key word is Systematically... that is have a system (a mechanical process, set of rules) of doing it. Its not a good idea to analyse the market after your are in the trade, for most of us this will never be consistent. You can analyse as much as you want till you take the trade/entry, but once you are in the trade, the very fact that you have stake in it, changes your brain/perception capabilities. So decide before hand a system which you will use to close in SL, as the market goes in your favour (which is mechanical).
In the trades I put here, I am following a very simple way:
For illustration. Say you enter long at 100 and initial SL is 97, if the price moves to 102 (2 points) you move the SL to 98 (1 point), next if the price moves to 103, you move the SL to 99, if price moves to 104, you break even and then you can stop (or continue). You can have any other logic, step size, it doesn't matter as long as you do it every time and without analysis.
After break even, you can follow any way of exiting you want. With a fix TP or trailing SL or time exit (end of the day/session etc.).
Just try and follow this simple rule in whatever methodology you are following and see for yourself in a months time (whenever you have taken 50+ trades with that methodology) see how it will always keep you on the positive side of trading
For people interested in knowing the theory/philosophy behind it, you can read some of Prospect Theory (Dan Kahneman, got Nobel Prize for it). Basically you have to be Risk-Averse in Loss and Risk-Seeker in Profit instead of default human setting of Risk-Averse in Profit (Cutting/Booking your profit) and Risk-Seeking in Loss (hoping it will come back)
]How to insure that you never lose money in trading :-)
There is one thing you can do, irrespective of your Entry methodology that can ensure that in the long run (50-100 trades, with the same methodology) you don't lose money. It is valid for all short term trading, short would be day trading/days trading. Its a simple idea but if you follow it, it can make sure you don't blow up your account ever.
Rules to follow is :
1.Never increase your initial SL ever.
2.Systematically decrease your initial SL whenever your trade moves in profit.
No matter what your entry criteria is : Fundamental, News, Technical, Mathematical, Astrological, Random, Emotional... if you just follow the above two rules, you will magically find that after a some number of trades (50+) you will always be not in loss... (and in good profit if your entry criteria has some edge)
Rule 1 is fairly obvious, as far as Rule 2 goes, the key word is Systematically... that is have a system (a mechanical process, set of rules) of doing it. Its not a good idea to analyse the market after your are in the trade, for most of us this will never be consistent. You can analyse as much as you want till you take the trade/entry, but once you are in the trade, the very fact that you have stake in it, changes your brain/perception capabilities. So decide before hand a system which you will use to close in SL, as the market goes in your favour (which is mechanical).
In the trades I put here, I am following a very simple way:
For illustration. Say you enter long at 100 and initial SL is 97, if the price moves to 102 (2 points) you move the SL to 98 (1 point), next if the price moves to 103, you move the SL to 99, if price moves to 104, you break even and then you can stop (or continue). You can have any other logic, step size, it doesn't matter as long as you do it every time and without analysis.
After break even, you can follow any way of exiting you want. With a fix TP or trailing SL or time exit (end of the day/session etc.).
Just try and follow this simple rule in whatever methodology you are following and see for yourself in a months time (whenever you have taken 50+ trades with that methodology) see how it will always keep you on the positive side of trading
For people interested in knowing the theory/philosophy behind it, you can read some of Prospect Theory (Dan Kahneman, got Nobel Prize for it). Basically you have to be Risk-Averse in Loss and Risk-Seeker in Profit instead of default human setting of Risk-Averse in Profit (Cutting/Booking your profit) and Risk-Seeking in Loss (hoping it will come back)
Trade Like a Casino, Not a Gambler{quote} TP +8.0 reached within the minute candleHad to zoom out to max to get the green triangle on the 1-min chart for this one...
Will update if I take the (long) trade after these points are hit.
Trade Like a Casino, Not a Gambler
{quote} SL hit with break even... :-)
Trade Like a Casino, Not a Gambler