NEW YORK ( TheStreet) -- When I speak to audiences about my approach to trading, I like to use a blackjack analogy to describe my approach. When you're trading, you always have to trade with an edge. You can't get to the point where you are simply making gambles, but rather you must repeatedly put yourself in favorable risk-reward situations. While you can never predict with certainty a move in a stock or market, you can limit yourself to the best setups.In blackjack, you are dealt a hand and you have no choice but to play it. In technical trading, you get to pick and choose your hands. How great would it be if you could go into the casino, sit at the blackjack table, get dealt 10-4, and say to the dealer, "no thanks, I'll wait to see the next hand." On the flipside, if the dealer deals you an 5-6 vs. his own 10-4, you can choose how much to put on the line and double down the odds. That's obviously not how blackjack works, because in that case the house wouldn't always win.
Parallels Between Poker and Trading
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