𝗪𝗵𝘆 𝘁𝗵𝗶𝘀 𝗶𝘀 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗽𝗼𝘄𝗲𝗿𝗳𝘂𝗹 𝘁𝗵𝗶𝗻𝗴 𝗮 𝗰𝗮𝘀𝗶𝗻𝗼 𝗵𝗮𝘀 𝗮𝘁 𝗶𝘁𝘀 𝗱𝗶𝘀𝗽𝗼𝘀𝗮𝗹 (𝗮𝗻𝗱 𝘆𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱 𝗵𝗮𝘃𝗲 𝗶𝘁 𝘁𝗼𝗼)
Imagine:
There’s a special coin in your hands.
Every time it comes up heads, you win $2. And every time it comes up tails, I win $1.
Now in the long run, who will win?
You, of course! Because you have a mathematical edge over me.
And it doesn’t matter whether you’re gambling at a casino, betting on horses, or trading the financial markets.
If you want to make money from speculation, you must have an edge over the other players (or the house).
But what about risk management and trading psychology?
It matters, but not as much as you think.
Because without an edge in the markets, even the best risk management or trading psychology won’t save your account.
