Category: Money tips Release Date: 2006-09-15
Excellent Trader usually do not like others to Trader par with gambling, even though they play cards from the successful ways of tackling problems who learned a lot of valuable things, but the nature of gambling is indeed flowing in the many excellent Trader blood. However, such a statement may be more precise, successful gamblers and excellent manipulator hand in dealing with issues, have a common mind-set, most of them do not like risk.
Need to explain is that gamblers mentioned here refers to those professional gamblers, they proficient in probability theory, rather than Las Vegas tourists or those who only lottery buyers.
Famous Trader Jack schwarze grid is a professional poker player, superb card technology so that he recognized that, in a low probability of winning a license should promptly withdraw from the former value. Schwaebische grid his trading strategy as "a person skilled 21-point game of cards." "If you scan a 21-point game of cards those skilled equity curve, it is not always exciting, but overall, it is the trend there has been a very good results. I put them together because I was intuition of statistical probability. "
Schwaebische Grid said: "clever gamblers is to operate under the guidance of risk control, when the feeling I'm feeling good, they are not under the big bet, but the probability of a favorable arises, they will be milli - do not begrudge to increase the bet. "They also have failed time and also may be costly, but that the situation in which they are found at very low frequencies. A career 21-point player in the possible loss of 10,000 U.S. dollars a night, but he will not be frustrated, because he knows that the probability of the dark of the night is always there. If he stuck to his usual strategy, he would walk in front of others.
Is called the father of financial futures, Leo Melamed is also an excellent bridge hands, he had led the Chicago Mercantile Exchange bridge team won the National Bridge Championship. He said the Vocational bridge hands are to understand, even though in a vice card in that you can get 12 points, but the road is not to obtain title through the Vice-cards are trying to get every 12-point to achieve, but should try to go a certain kinds of far more moderate way, and those who frequently get a brand point of 8 or 9 players will usually obtain title. If you are too hasty, you may sometimes get 12 points, but the more often you get it is zero.
David Copeland in secondary schools often play cards, and often in the double race win cholla America. He published a book "like playing cards, as to the Trader," recorded how the experience of playing cards to his trading strategy to revelation. Without this experience, Copeland that he would not have been so successful, "because my idea was to come from this." Playing cards that is secondary to the risk control field in the transaction Copland's "strong units." Trader, when he was always very cautious when the market is extremely volatile, he has a "short-circuit" mechanism. "For example, when the Government talks a lot about or want to reduce the debt owed interest on the debt, we are closed most of the positions, although sometimes this operation proved to be redundant, but when the market is out of control, it may save you."
Then, in a particular case should make little bets, which you can use the "Kelly criterion" --- Bell Labs to determine the optimal transfer rate phone line while the invention of a simple formula. Namely: if a second bet stake earnings expectations for each unit E, and the stake and earnings ratio of B: 1, then the best bet for the (E / B) × amount of money. For example, if the licensing by 21 points in his favor appeared to determine the current number of the probability of 1% return for the 2:1 win, his total capital, 000, the most modest bets should be (0.01 / 2) ×, 000 =. Beginning to be professional gamblers who use this method to determine the next bet, gradually developed into a number of traders using the optimization factor.
Melamed once said that if he wants to recruit traders, bridge hand will be the priority target group for recruitment. Strict bridge training so that they have such qualities, not every hand are very important, it is important that the final outcome.
