Are you a loser, or are you playing the losers game by playing the losers game, you can actually become a winner. What am I talking about? Let me explain in this video please like or dislike the video or leave a comment below that will allow me to produce better videos and more of them in the future. So I thought I’d do this video after a popular blog post, that I did called the losers game and the premise of the losers game is that you can win overall, just by playing a very simple variation on a standard game and I’ll summarize it in the Same way that it was summarized for me – and that was when I was playing tennis after many years of not hitting a ball in anger across the tennis court, I decided to start playing again and eventually the gym that I belonged to got a coach in, and He said: hey Peter Peter, stop. You know.
Why are you going for winners and I said well because I want to win and he said no, no, no! No at this level, you know you’re not going to play like a professional tennis player. You can’t go for those shots. All I want you to do is to just get the ball back, just focus on receiving playing the ball back into the court and make your opponent do the work and he summarized it as the losers game, and he said you know, your objective is not to Win, it’s not to lose and you have to play the losers game, and so I went often researched and had a look at it and sure enough. There was loads of research to summarize that at that level of sports there, which I was playing, that that was actually the way to do it. Let your opponent make mistake: make them run around that they’re going to make many unforced errors and therefore your objective is simply to get the ball back and sure enough.
You know my game changed fairly significantly. Now the same thing applies in a trading market. The markets made up of many types of individuals and participants, especially on the sports market. You have just normal punters.
They just want to get a bet on they’re, not particularly price sensitive, so they’ll take whatever price is available. You can benefit from that, but also from in the trading sphere, that people just do daft things. It’S human nature, that’s the way the mind works, the way that people attempted to trade and also people often come into trading, and they don’t pay a great deal of attention in terms of feeling like it’s a business.
All they do is they jump in? They perform a certain type of strategy and then wonder why it doesn’t work or they buy an e-book or they watch a video or something and they’re wondering what’s going on there. Well, the fact is, then, you know publicly available.
Information is available, whereas the notes just everywhere, but it doesn’t necessarily mean that it’s valid advice, if you seek to improve your trading, you should invest in it the same way. You would invest in a skill for a job or if you want to go faster, you upgrade from a bike to a Formula One car. You know you invest in what you’re attempting to you elevate yourself above everybody else, but typically what you tend to see. I can give you an example: there’s a great video on YouTube. It outranks some of my videos by a fair amount of views and it’s got more likes and it’s got some very positive comments on there about how good the video is.
But I actually use that video to show people what not to do in a market, because it breaks pretty much every single rule that you could possibly imagine, and yet there are loads of people out there they’ve seen it who will probably try and copy it. So if you trade in a market completely at random you’re, never going to win or lose much, what will actually happen over time is you’ll just gradually. Your account will decline because you’re paying Commission when you win and that’s gradually eating into your balance. Every now and again I go off and test this and see how the market behaves and if you look at these two graphs you’ll see.
The first graph is a random strategy, so it doesn’t win or lose a lot of money individually, but over a long period of time, gradually the account balance Erbs away as more and more commissioners paid. Now, if we look at exactly the same set of races but bring up the next graph, you can see it’s going in completely the opposite direction, and all that I’ve done here is modified. One element to avoid certain types of markets with the strategy that I was using so applying the strategy blanket. It ends up as a lost, mainly thanks to commission, but the other one is ending up at a profit simply because I’m avoiding the most obvious errors. And this is what I suggest you to in the market, especially if you’re starting out trading for the very first time. Your objective is actually not to make money.
Your objective is not to lose it or not to lose large amounts of it, because, even if you trade at random, you will get very positive trades that come out of nowhere, but you will also obviously get negative trades that aren’t particularly beneficial. So your focus really is not to make money when you first start its to break even and to cut out the most obvious errors, because everybody in the market is making those errors most people, the vast majority of participants in the market, overestimate their ability and they Haven’T invested enough time, money or efforts to differentiate themselves from the crowds or they end up doing is losing money over the longer term, and all you need to do to right. Raise yourself above that is to stop cutting out the most obvious errors. So when I first started on horse-racing, that’s what I did I went into it. I just traded everything and there were some obvious errors that I was making.
So I just started to really focus in and say: well why did that occur and why did this occur and then suddenly you begin to spot the patent anything you know. Okay, if I cut this out, my performance will go up a level and sure enough add it, and then you just build and build and build and build and build on that. So I actually think that trading is a loser’s game as well, because the boards are bouncing backwards and forwards across the court. People are often going for winners and all they’re failing to forget, as if you managed to stay in the game for long enough, then you’re going to get a positive outcome anyway, and in fact, the line that you need to cross to get positive is much smaller Than people would ever imagined at the end of the day, if you trade at random you’re, going to get random results, but that will be random positives and random negatives and the two will cancel each other out.
But if you focus in on a couple of things and you cut out the most obvious errors, then that’s the fastest way to make progress. You can worry about the really big trades at some other point in the future, but certainly when you’re starting out or you’re trying to build a strategy in a new sport. The best thing to do is to trade it at random. Look at where the biggest losses occur understand why they occur and then start cutting them and that’s the losers game. That’S how you can win by playing the losers game click here to subscribe to our YouTube channel you’ll, get instant notification of new videos as they’re released.