All language subtitles for 3. trade like casino

the trade. That money is
already written off. Because

then if you take a valid losing
trade, you know that that loss

individual trades. Trying to
predict the outcome of

doing the exact same thing over
and over again. You're focused

gamblers and amateur traders.
You must keep a long-term

because we don't care what
happens on each individual

is just taking you one step
closer to your inevitable

swing that way emotionally when
you get it right how do you

tearing his hair out trying to
predict where the roulette ball

you're going to feel depressed
and that pridefulness that you

winning streak. It's just
probabilities. That is

vision. Master traders focused
on executing their proven edge

you're slightly better than the
market but the more that you

on the next five, ten, 20,
fifty, 100 trades. You have

fully accepted the risk before
you even know the outcome of

the exact same way when you hit
a massive winner as when you

right you can become euphoric
you can really start to feel

have truly mastered your
trading mindset you will feel

later? When I first started out
trading and you know, people

this before, they usually often
react and and you know in shock

haven't already are, you know,
what is the US dollar going to

consistently make money because
they have an edge that plays

casino manager sitting up in
his office watching the

think you will then react when
you inevitably get it wrong

think he sits up there cheering
on the ball, stomping his feet

out over time. Now remember the
coin flipping game from the

will land? What if a gambler
puts down a big bet? Do you

games just as traders ought not
to care about the results of

and they're like, what do you
mean you have no idea? I

were feeling that's going to
turn into a feeling of shame

these questions literally
countless of times. My only

flip. We make money from
applying a mathematical edge

you know you're going to feel
like you're not good enough

you're going to feel stupid and
disheartened now picture the

actionable certainty and
secondly, it would be pointless

really proud and sort of you
know supremely intelligent like

The casino manager does no.
They have no idea but yet they

over hundreds of flips the same
way as in trading and the issue

course not. He doesn't care
about the results of individual

then ask them back if the
casino knows what number the

lesson before. What if I was to
have you try and predict the

with zero expectation on the
individual outcome when you

if you don't know what's
going to happen next? Now, at

crystal ball. As you can
imagine, especially if you've

and chanting for it to not land
on red fourteen? Alright, of

roulette viral with the camera
feet. Can you imagine him

individual trades is just a
futile exercise if favored by

may incur and all of those five
are really great lessons that

outcome of each and every
individual flip of the coin.

ball is going to land on in the
roulette table. Of course, they

don't. It's impossible to know
because an individual spin is

random, right? And it's the
exact same concept in trading.

that they can participate in as
many games as possible. Right,

trying to predict individual
trades is that when you get it

this point, if you can be
bothered to explain to them,

take the time to explain to
them that, you know, we don't

losing trades because they know
that that would destroy their

we can apply to our trading
Now, as a currency trader, some

spin and they don't need to
know. The outcome from each

already had a similar
conversation with someone about

where you know the punter could
potentially have a lucky win

response now is that I
literally have no idea what's

going to happen to next. You
know, I don't have a magical

really predict price movements
per se but after answering

take a loss you won't care
because you know you're just

thought you're a currency
trader. How do you make money

putting maximum bet size limits
on the table because that

Firstly, it would be impossible
to predict with any degree of

out and survive any inevitable
random losing streaks that they

puts risk management measures
in place so it allows them to

plan no matter what. If they
lose money on five spins in a

stay in the game long enough to
see their profitable edge play

remember, to see the edge play
out over time. Now, they have

money from carrying a positive
profit expectancy and allowing

that could end up wiping out
the casino so the casino just

and modify their strategy rules
after only a small number of

so they use risk management
techniques such as you know

of the common questions you no
doubt will receive if you

prevents any of the punters
from putting on a huge bet

no idea if it's going to win or
lose but if it's random on an

they are able to amass billions
of dollars in revenue each year

to change the rules of the
game. They don't try to tweak

the casino never knows if they
will make money on any given

individual spin or trade is
completely random. They've got

probability model. And finally,
they take measures to ensure

large number you to play as
many games as possible,

play virtual roulette but what
this means for the casino is

would ask me these type of
questions, I used to try and

the casino that we can actually
apply to our training? Well,

individual spin, then how do
they make money? They make

what are some of the key
lessons that we can learn from

row, you know, they're not
getting emotional and beginning

do next? Is it a good time to
buy euros for my holiday now or

it to play out over a large
number of trials. The law of

nice comfortable chair in front
of a big screen and essentially

about the casino for a second.
The house holds a slight

you are going to go and play
roulette you're actually better

games every single day. They
are the masters of exploiting

mathematical edge with each
game that they play and they

the law of large numbers to
their advantage. Now, think

off going to Europe to play
where there is only one zero

have to consider a roulette
table with 10 players each with

tables everywhere they're
becoming really popular and

the profitable edge works
through over time. This is how

strict rules for each game and
they never, they never break

essentially with these machines
Ganders can just sit down on a

whereby they can play their
games. Now in America they

they now require less staff and
they can pretty much run games

and erect those massive grand
buildings all over the world

keep playing day in, day out,
every day of the year so that

and sometimes even more of
these tables and they usually

the last time I was in Vegas
they had electronic roulette

thousands of pounds worth of
chips that they're willing to

and the odds are slightly
higher on the tables there. So,

gamble and then remember each
casino probably has 10, 2030

them. So, essentially, they
always stick to their trade

quicker which then means
they're getting in even more

actually have two green zeroes
on the roulette world. So if

roulette gambler now 270 may
not seem like much then you

win multiplied by the
probability of you winning

£270 loss for every 100 pounds
that you bet so from the

profit expectancy of £270 for
every 00 pounds that is bet we

and then we divide that by our
minus 100pound loss times 19

player you actually have a
negative profit expectancy of a

which you then add to the
amount that you can lose

open twenty-four hours a day
you know even these days right

total to minus 270 so what that
actually means is as a roulette

over 37 because remember there
are 18 red numbers and that one

multiplied by the probability
of that loss occurring. So in

casino's point of view however
right they have a positive

this case that's a 100 pounds
times 18 over 37 because there

green number which both means
will lose so this is equal in

are 18 black numbers out of a
total 37 numbers on the wheel

loss so if the ball lands on a
red number or the green zero

calculate the profit
expectancy. So remember the

want to make sure that we are
the casino right and not the

profit expectation is the
profit that you can make if you

chance of winning by flipping a
heads or tails but then we ever

those will result in a loss so
hopefully Remember how to

that will be a 100pound loss
now out of the 37 total sells

principle. So let's use our
knowledge of probability to

previous lesson with the coin
toss example where it was a 50%

so slightly skewed the odds in
our favor by changing the

that will just cost our initial
bet which is obviously a 100-

the ball lands on a black
number and we win or if we lose

18 of those are black which
will result in a win and then

the other remaining 19 sells
are either red or green and

calculate what your profit
expectancy is with a 100 pound

to one so that just means that
we'll make a 100 poundprofit if

bet on black. Now a few things
we need to know a win pays one

winning payout. Well this is
essentially the exact same

red cells and 18 black cells.
Zero is green and that

numbers one to 36 are made up
of an even distribution of 18

green zero cell, the casino
ever so slightly tilts the odds

extremely simple and we're only
going to concentrate on the red

for the sake of this example,
we're going to keep it

and black diamonds on the
bottom of the table. Now the

in their favor on each and
every game. So remember in the

represents an automatic win for
the casino. So by including the

standard roulette wheel is
numbered from zero to 36 and

at one of the most popular
tables, the roulette wheel. And

understand how they make money
and then see if we can learn

some things for our trading
business. So let's take a look

Casinos are the undisputed
masters of the world at Playing

masterful trading. That is
photon trading.

an Edge. So let's have a quick
look at their business model to