Trade Like a Casino for Consistent Profits by Adam Khoo – Here’s how to learn the stock market
This is one of the great method my adam khoo to make consistent profits in the stock market. Combining his method with technical analysis one can have edge over the market. However, This is not a complete method.
Our mentors have tried to apply this trick and have observed something which Adam completely forgot to mention. Now, It is not important for it to apply it in one trade but it makes a Huge difference in the bigger picture.
We are not talking about Over Trading but lets first understand this method. In the
Adam says, As a professional trader, he generate his income by trading in the stock markets. People thinks of him as funny and a gambler.
But, here’s how he really thinks the Trading is
“Trading is GAMBLING”… Stock market is a Giant legal Casino.
In gambling, who always losses money/ the answer is “The player”. As a player, you may win sometimes or lose in a short term. You may have a winning streak based on luck. But luck doesn’t last forever.
But who always makes money in the end? the Casino. Like the phrase ” The house always wins. Why?
There is a reason why casino give away Free food, free entertainment, to attract people. The more people will play, the more money CASINO make.
How do they do that? how do casino ensure that in the gme of chance they always make money? here’s the secret of Casinoo and to how as a prefessional trader, you can make money in the stock market.
Well, What they do is they Rig the games in such a way they have a statistical edge over the market.
Lets a take a example of a game called Roulette.
There is a giant wheel, and this wheel is made up of Numbers along with spinner in the middle to throw the ball. Now, one can bet Even or
Here’s a catch, People thinks the chances of winning is 50-50. Well, They are wrong. Here’s how.
The casino has rigged the game, In Such a way, there are altogether 18 RED Numbers,18 Black Number. Similarly, 18 even and 18 ODD number. However, there is 2 Green number which
For example, you bet on Black what are the chance of you being right? it would be 18/38 ( 18 Red 18 GBlack 2 Green).
Whereas, the casino chances of winning is 20/38. Cause if the ball lands, the casino wins.
Player 18/38 = 47.3%
Casino 20/38 = 52.7%
Total edge of
In the long run, over many bets for ever Rs 1 the people bet. The
If the million dollars are, the casino makes on average Rs 54,000. The more people will buy the more money Casino would make.
SO, as a professional trader how do we replicate the business model of casino owners. But how 90% of the traders lose money? The reason?
They don’t have a plan, No strategy. They buy based on Rumors, news or calls.
Once you buy a share, the price of a share the chances of going it up is 50-50. Well, it is 50-50 which is not bad. But the trouble is this,
They lose more when they are wrong and they make less when they are right.
Let’s say, They buy a share at 200, They believe it will go up. That start going down and they still hold on to that hoping it would go up.
Similarly, If they buy a stock at 200 and if the stock goes down even a little amount, they wanna sell it. They want to take the money from the market.
The gratification, cause small wins or profits. The fear of losing money causes people do not want to cut the losses.
As a result, They loss more when they are wrong, and they make less when they are right. When do you the maths, They would for sure loss the money.
Now, How a professional trader can rig the stock market? When most
So, The market can either in uptrend, downtrend or sideways. So even if you are 45% right, you would still make money. As a player, you bet for 1 to 1.
but as a professional trader, always bet for 1 to 2 or more.
Now, here a example, the market is going sideways, its in a range.
So let’s say you make 20 trades in a month. Out of those 20 trades, 10 trades are in your
However, lets calculate with Risk reward ratio
Profit 20*2 = 40 Loss= 20*1 = 20
Still, profit is Rs 20.
Profit 7*2 = 14 Loss 13*1 = 13
Profit = Rs 1
Now, this method sounds very easy, but why do people still lose money. Well, there are 3 Very important things a Professional or any beginner trader should let go off.
Even Adam Khoo had forgotten to mention that. Join our Star trader class to learn those 3 techniques, which are missing in this system.
To register for a demo , Click here