The stock market is not the lottery, though many people treat it as such. The stock market is not a casino, though many people treat it as such.

Of course, if that is what you want out of the market – you can by all means do it by simply purchasing (or shorting) random stocks, at random prices, at random points. Doing this will effectively put you into a casino or inside a gas station filling out random numbers in the ‘hopes’ of something working out in your favor.

However, the majority of us (hopefully) are smarter than this and realize that this is a losing man’s game. Yeah, perhaps you get ‘black jack’ once or twice, but in the long run making consistent money is going to very difficult, if not impossible as the mathematics are significantly against you when it comes to gambling.

The only way to combat this within the stock market is to implement a process that involves finding and practicing strong risk to reward techniques. Meaning, find the price patterns that offer you the biggest reward for the smallest amount of risk associated with them. Of course, it takes time to develop a process and a mental collection of patterns that you (as a trader) are comfortable with. Throughout this process of keep in mind the importance of the keeping risk small, and reward large.

If you are able to do this, perhaps, every now and then you will get a little ‘lucky’.

 

How To Create (a little) Luck