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
Check Out Our Best Services for Investors
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.