"Kinds of Bets or Trades" (Risk management)
"There are really four kinds of trades or bets: good bets, bad bets, winning bets and losing bets.
Most people think that a losing trade was a bad bet. That's absolutely wrong. You can lose money even on a good bet.
If the odds on a bet 50/50 and the pay off is 2$ vresus a 1$ risk, that's a good bet even if you lose.
The important point that if you do enough of those trades or bets. eventually you have to come out a head.
-Also why you should be a process-oriented not results-oriented {WATCH THE CHART}
P.S -Always keep in your mind;
You can control: RISK-COST-TIME-EMOTION
you can't control: RETURNS
So it beats me WHY....
YOU RARELY FOCUS ON (RISK-COST-TIME-EMOTION)
BUT YOU ONLY FOCUS ON (RETURNS)
All the best homies and if you want more of this content plz leave a comment.
PEACE..
Most people think that a losing trade was a bad bet. That's absolutely wrong. You can lose money even on a good bet.
If the odds on a bet 50/50 and the pay off is 2$ vresus a 1$ risk, that's a good bet even if you lose.
The important point that if you do enough of those trades or bets. eventually you have to come out a head.
-Also why you should be a process-oriented not results-oriented {WATCH THE CHART}
P.S -Always keep in your mind;
You can control: RISK-COST-TIME-EMOTION
you can't control: RETURNS
So it beats me WHY....
YOU RARELY FOCUS ON (RISK-COST-TIME-EMOTION)
BUT YOU ONLY FOCUS ON (RETURNS)
All the best homies and if you want more of this content plz leave a comment.
PEACE..
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