All Trading Involves Luck But Good Traders Attempt to Minimize It
• There are two key elements to success in the market: 'skill' and 'luck'
• We cannot control luck, but our strategy is within our capacity to improve
• Even the best strategy cannot fully discount luck (market conditions), but we can minimize it
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
The best trader and best strategy will always be open to some measure of 'luck' (market conditions). It has been said that success equals a combination of both skill and luck, and there is little doubt that is true of the markets. The best we can do as market participants is refine and improve our strategy - the 'skill' element of investing - to minimize dependence on luck and curb its influence as much as possible. Working on our knowledge, experience, psychology, strategy and money management approach will lead traders to higher probability scenarios and away from gambling. However, even the best trader will face losses as markets are dynamic and sometimes irrational. We discuss the inseperable combination of luck and skill in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.