Roulette System Gambler Reveals Money Management Strategies

For traders starting out, many believe the key to success is a simple good entry.  This unfortunately is wrong. By far, the most important aspect of a successful outcome is utilizing a proper money management system. This is true for both gambling and trading.  Roulette Strategy SystemsFor years I played my roulette system in casinos semi-professionally and this is where I learned my money management techniques. This is where I discovered that money management is more important that having an edge. Especially in the casino where the house has a mathematical advantage over the player. I used money management to overcome the the casino's small edge and produce steady consistent results. Now I use many of these same principles while trading full-time in the exciting forex market. And any professional gambler or trader will tell you the same thing. Managing your wagers correctly is the only route to consistent profits over the long run.

Losing will always be a pert of winning. Having winning strategies and implementing them in a systematic way is the key to success. Your system will help determine key entry and exit places in the market. Many traders focus on probabilities when finding their entry point. Sounds great, but in the real world, like in roulette, everything is ultimately unpredictable. It's rather impossible to be right more than 50% of the time. Any many professionals are right less than 50% of the time. So you might say, how can you be wrong more than 50% of the time and still make money? The answer is, you guessed it, money management. Too often, it tends to be the last thing gamblers and traders learn, if ever. This is why most gamblers and traders are losers. Always focus on protecting what you have first, then focus on making money second.

Check this out. Flipping a coin. You buy if it's Heads and you sell if it's Tails. Assuming we take a risk of two percent or $200. And the reward target is four percent of $400.  Ten trades, half win and half lose.
 
1. Buy   ($200.00)
2. Sell ($200.00)
3. Buy   +$400.00
4. Sell   ($200.00)
5. Sell   +400.00
6. Buy   +400.00
7. Buy   +400.00
8. Sell   ($200.00)
9. Buy   ($200.00)
10. Sell  +$400.00

The ending result after ten trades is a profit of $1,000.

This is the amazing result of good money management. You can still turn a profit, even if you only win half the time or less. This is why my roulette system was a winning strategy despite the casino's edge. And this is why I trade forex successfully without charts or fundamental analysis.

Emotions can get involved at times and it can be rather difficult to stick to the plan. But you must. Be sure to always cut those losses quick, otherwise they can build-up fast. Stop losses are a must for most successful traders.

  • Never trader without a stop loss.
  • Have a risk-to-reward ratio on every trade that is at least 2 to 1.
  • Keep an eye on leverage. Using too much leverage can blow up your account fast.
  • The goals you set should be realistic and take time to achieve. Having unrealistic goals can cause reckless risk-taking.
  • Cut the loss on a losing trade quick and move on to the next bet.
  • Protect your winning profits with traling stops.
  • Don't gamble with money you can't afford to lose. Trading with this money is gambling because emotion will prevent you from sticking to the system.

Views: 177

Comment

You need to be a member of My Forex Space - Online Forex Trading Community to add comments!

Join My Forex Space - Online Forex Trading Community

Featured Brokers

© 2019   Created by Sam Wexler.   Powered by

Badges  |  Report an Issue  |  Terms of Service