Quote from dtrader98:
It's funny to watch all these gambling analogies to trading (poker, blackjack, etc...) surface from time to time. I was recently reading a book on how modern horse racing handicappers succeed.
The funny thing is, these guys go through the same types of debates that some of the trading forums have. Some say handicapping (trading strategy) is more important than money mgmt. etc. But all pretty much agree, both are important.
Let's face it. When it comes down to it, trading is gambling. The more you understand that relationship, the better off you are IMO. I wish I had studied these types of books/strategies long ago, rather than wasting time on the proliferation of cherry picking TA visual arts books.
Not that pattern recognition TA is completely devoid of merit, but the subjective approach that the far majority of authors seem to advocate is sorely lacking IMO.
Great post. In the end they are very similar. It all comes down to money management/what you put into it. You see a great set up, you have to put on a big position. You find an angle with a horse you like, gotta send it in. I know a few professional horse players who do VERY well. It's all about putting the time in. When things arent going well bet less. When things are going well....bet more/trade bigger.
I do agree with the guy who said the vig in horse betting is tough to overcome. But it can be done.
I had the pleasure of spending some time at the track with Andy Beyer. The guy is a genius. Probably similar to spending a day with Tudor Jones on his trading desk.
