I have studying everyday various systems and
I think my roulette analogy comparrison my be more correct
than I thought.
This is from a gambling site:
"Whenever we compare playing Roulette to investing in the stock market, we find that your brokerage fees are like the house advantage. Without paying your broker a commission, you are not allowed to play the stock market game. On that same token you are not allowed to play the Roulette game, if you are unwilling to pay the house its commission, i.e. the house edge."
I becoming more and more convinced that indicators are not
the important thing, but money management. With correct
money management, one could even pick by flipping a coin.
I have had no experience at casinos, but I am currently studying gambling techniques to see if that can help.
One example, is stock experts say never average down and put tight stops, but I have spent hundreds of hours testing programs and the opposite is true. The caveat to that
individual stocks often have surprise that can foul up
a perfect string of winners. I have systems that are right 80%+ but gain little because of surprises.
Stop limits garrantees losses, price targets garantees missing winners, and averaging down improves the chance of winning dramatically. And I can prove that. Again
the secrect is conservative money management.
THe other element is hedging that I am working on.
My attempts at this are still protecting against drawdown
in a way I would like. |
