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Similarities Between Blackjack and Currency Trading

Both the game of blackjack have a similarity in that - there are no certainties of winning on any hand or trade but certain hands and certain trades have a high probability of success than others. If you focus on betting or trading the high odds hands or trades, with good money management, over time you will be exploiting an edge which can help you beat the casino or win at Forex trading.

Lets look at the three groups of player in blackjack and then, compare them to groups in Forex trading.

The Casual Player

The casual player is one who knows the rules of blackjack and the basics needed to play but no more than this. He is looking for a good night out, fun and excitement and a few beers and a good time with his friends. He knows the rules of the game but will double up on a 12 and make other basics mistakes, like sticking on 15. He will sometimes get lucky and win but overall, his knowledge of just knowing the rules and not having an edge, will see him lose money longer term and the casino loves this type of player .

The Player Who Knows the Basics

This trader will not only know the rules of the game, he will also know that doubling up on a 12 is not a smart move - so he knows the basics but knowing the basics is not enough to have an edge. He will have winning streaks and losing streaks but the longer he plays, the more likely he is to lose his money. Knowing the basics of blackjack is not enough – any card player needs a trading edge to win long term and he doesn't have it.

The Pro Player

This player has not only taken his time to learn the rules and the basics of betting, he has also learned to card count and how to vary bet size, in relation to the odds he sees on a given hand. It's a fact that on a single deck game, the expert player has an edge which can be exploited, to build long term profits. In casino's, these players are thrown out or banned and this is because, the casino knows not only are they playing to win, they can and will win over the long term.

Forex Traders Compared to Blackjack Players

The same groups are present in Forex trading in terms of casual traders, those who knows the basics and those who are experts :

The Casual Trader

This trader knows how to place an order in the market but has no trading strategy with an edge – he watches news tips, follow robots, trades to much, uses to much leverage and uses numerous different trading strategies which don't work. He simply trades for fun and excitement and has no idea how to get an edge or make money.

The Trader who Knows the Basics

This trader will have taken the time to learn the basics and will have developed he set trading strategy he thinks can win but will not have a definable trading edge. He will be able to use indicators in the right way or know a basic strategy for success but what he won't know is - how to apply a trading strategy which has an edge which he can win long term with,. To win long term in Forex trading just like you do in blackjack, you need to know how to vary bet size, set stop levels and targets. He knows the basic theory but has not worked out how to mould it into a trading strategy with an edge over other traders who learn the same information. 

The Pro Trader

The pro trader, not only knows the basics of trading and has researched various currency trading strategies, he has also developed a trading edge which he is confident and can give him an edge over the market long term and make him great Forex profits.

The edge is not just based on the way he views his trading strategy - but is also related to bet size, money management and courage. This trader has a strategy which can win but he makes it win, by his intuition, courage and his knowledge of bet size variation.

The Real Secret of Forex Trading Success

To sum up on playing the odds at blackjack and Forex les finish with some quotes and look at there application in Forex trading:

Blackjack is the only casino game an amateur can learn to play and at which he can definitely win." (Lawrence Revere, author, Playing Blackjack as a Business)

You can win at Blackjack because you can get an edge over the casino and the same applies in currency trading – you may not win every hand or every trade but you can win over the longer term by exploiting an edge.

Remember this: The house doesn't beat the player. It just gives him the opportunity to beat himself." -Nicholas (Nick the Greek Dandalos)

90% of Forex traders don't win money 10% do and this has always been so – why? Because 90% of traders don't know what an edge is and how to get it and lose longer term.

"If you ain't just a little scared when you enter a casino, you are either very rich or you haven't studied the games enough." (VP Pappy)

The best card players and the best traders know, that success is just as much down to confidence and courage, as it is to trading strategy. You need to know the odds, know when to bet big and hold and also, when to fold which leads me on to my final quote:

There's a time to hold them. A time to fold them and a time to get out of town fast” (Unkown Gamblers Quote)

The above quote sums up, what you need to win at trading or card playing which is an understanding of money management, a time to quit and the courage to bet big and hold. It's a simple quote but its very true - most traders could learn from the quote above but they don't. They shoot from the hip or only know the basics but don't understand the concept of a trading edge and why, its so important to long term success playing black jack or trading currencies. If you do, you can win with a trading strategy which puts the odds on your side and gives you the edge you need to win with your currency trading strategy.

Final Words

There are many traders, who have made huge amounts of money and have come from the world of professional card playing and perhaps one of the most famous is Blair Hull. You can read more about hi on this site in the best currency traders section. Currency trading success is all about an edge, money management, variation of bet size, courage and discipline – its not about complex methods or hard work - so learn how to trade the odds, study blackjack and learn, the real secret of trading success which is trading the odds for profit. 

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