Trading Probability & Psychological Biases: Most IMPORTANT Lesson for traders?

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  • Опубліковано 26 сер 2024

КОМЕНТАРІ • 133

  • @mhlatyanantintelo5011
    @mhlatyanantintelo5011 4 роки тому +9

    Just want to take a moment to appreciate what this man is doing for traders of all breeds, the content on this channel is simply brilliant. Thank you so much for what you’re doing champ, please keep it coming, you have no idea how many lives you’ve changed 🔥🔥🔥

  • @ionluchin8168
    @ionluchin8168 5 років тому +3

    I can’t believe there are thumbs down on this content. Not sure if such an important element of trading can be related in simpler and more down-to-earth way. Thank you Nicholas for putting so much work into this.

  • @wolfgangmazzoni258
    @wolfgangmazzoni258 6 років тому +3

    Hi! As always I get the confirmation that I have chosen the right person to follow. I am half way through Your full course, hitting ups and downs, but not breaking.
    "Hard work beats talent when talent doesn't work hard".
    Just thank you for being sincere.

  • @wendyowen969
    @wendyowen969 5 років тому +3

    Thank you Nicholas. Your videos give me great insights into trading psychology that no one else does!

  • @fkmedia2275
    @fkmedia2275 6 років тому +2

    The honesty in your tone is what keeps me coming back!!! Proper content on this channel!

  • @adddad9779
    @adddad9779 6 років тому +1

    Nick, have you discussed expected value? I was a profitable poker player in college. Being a decent poker player is crazy boring... But I knew my chances on almost every hand... For example, my chance to make my flush after the flop (need 1 card) is about 33%. If my bet is less than 33% of the pot, then that is a profitable bet, and good poker players: 1. Are not gamblers, 2. Know their expected values and play in a profitable manner. It's ok to lose a hand, because they understand over hundreds of hands, they will be in the money.

  • @TheMarksdaspark
    @TheMarksdaspark 5 років тому +2

    Hey Nicholas this video is another gem in your education work. Fooled by Randomness was an eye opener for me and you have done a great job getting to the essence of it. Thank you for being honest in your education efforts.

    • @xyz987123abc
      @xyz987123abc 2 роки тому

      Randomness is a great way to fool the masses since it can't be proven or disproven.

  • @mustafadayan2049
    @mustafadayan2049 6 років тому +2

    2 good books on the subject are Disciplined Trader and Trade in the Zone by Mark Douglas. There is also another great book on the subject is Mindful Trader by Gary Dayton. Thank you for simplifying these complex terms Nicolas.

  • @Itsallgoodtogo
    @Itsallgoodtogo 6 років тому +1

    What matter the most in trading is sticking to your strategy.
    Yes you might have lost 5%, but don't go crazy the second you see a good trading opportunity and risk 5% of your equity because you have a high chance of wining the trade. This is something thats' extremely hard to resist even for me saying that.

  • @Sajjadbukharydha
    @Sajjadbukharydha 4 роки тому

    Nothing could be better than this for those who are trying to become trader

  • @alitanwir3372
    @alitanwir3372 3 роки тому

    The difference between you and other trading channels, is that you actually give away value.

  • @RKJMusic
    @RKJMusic 5 років тому +3

    your videos are amazing, im new to trading and ive literally spend the whole night watching all your videos !
    Thank you so much !

  • @mikewilson3640
    @mikewilson3640 6 років тому

    Something every trader needs when they are thinking about quitting or looking for answers. You obviously have put in the hard work. All your videos have a very unique insight to trading! I have been trading for a year now and thank you for your motivation.

  • @ob6164
    @ob6164 6 років тому

    Such a good rendition of the biases and things we believe during trading that simply aren't true.

  • @theunknown9495
    @theunknown9495 4 роки тому

    100% agree. And no one knows what will happen next in the markets

  • @xyz987123abc
    @xyz987123abc 2 роки тому

    Finally a pro that avoids the 4/5 big eco reports. Also what is a binary trade? I keep hearing the term but am a bit lost on it.
    The most important lesson I learned early on is never to suffer from f o m o, fear of missing out. There will be days when you sit here all day and do nothing.

  • @albright3c
    @albright3c 6 років тому

    This guy is fantastic for providing this concise and in depth knowledge. Much appreciated

  • @ArunKumar-bp7pw
    @ArunKumar-bp7pw 4 роки тому

    I did all mistakes what u said, my thought process changed after watching your videos, thank u ,god bless u

    • @Duomoinitiative
      @Duomoinitiative  4 роки тому +2

      Glad the video was helpful Arun. I had to learn the hard way with many of these things.

  • @BookinablinkByBallage
    @BookinablinkByBallage 5 років тому +1

    Definitely One of Your Most Important Trading Lessons !

  • @guyredares
    @guyredares 6 років тому +2

    You put together many relevant probability concepts, thanks.

  • @luckeblack9139
    @luckeblack9139 5 років тому +1

    I really like this YT channel. As I started somehow by accident (was relactend to trade even with loaded money on broker account) with traiding (of course lost some money 700EU) and did not use stop losses not even followed trent I am in process of learnimg. Because I am pissed about my decision to open the first trade now I learning a lot about finances. Anyway thank you for sharing your knowleadge with us.

  • @overplayed3553
    @overplayed3553 3 роки тому

    you always become a stronger person when you do something hard

  • @ponzianomanning3071
    @ponzianomanning3071 2 роки тому

    The probability of missing a revolvers bullet 25 times in a row is (1- .1666)*25 = .0105. The Kelly % formula can be used to evaluate the optimal position size, and avoid the dreaded "Gamblers Ruin." But be conservative when plugging in subjective probability numbers into any trading formula. Overconfidence in a traders "Subjective probability" estimates gets them in trouble.

  • @marlongoedschalk4647
    @marlongoedschalk4647 6 років тому +2

    Hey Nicholas. I appreciate the effort you invest in your videos. Very informative and shaping future trading characteristics. Very good Brother. Have a good weekend. Thanks again.

  • @kioriaanthony
    @kioriaanthony 6 років тому +2

    One of the best videos I've ever watched. And first comment ever on UA-cam. Great info!! Thanks

    • @RMFP
      @RMFP 4 роки тому

      ⁰⁰⁰0⁰⁰00000⁰⁰0

  • @iliovecaRS
    @iliovecaRS 6 років тому

    Best education channel on UA-cam

  • @drknobby
    @drknobby 6 років тому +13

    Not a great video Nicholas.....
    - a BRILLIANT video.
    The way you present all your stuff is 5*. Even though i've read a lot of this material, the way you get it across is the cat's pyjamas.
    I'm going to bookmark this one and make a rule to sit and listen before the start of each trading week

  • @jibuoommenthomas52
    @jibuoommenthomas52 3 роки тому

    One of the best videos on trading

  • @Rufeorufeo
    @Rufeorufeo 6 років тому +8

    Fantastic video thank you

  • @kellysmith7357
    @kellysmith7357 3 роки тому

    Thank you for the info!

  • @egyptiantrader2939
    @egyptiantrader2939 3 роки тому

    Very interesting approach. It's given me more resolve to keep practicing and not rush things.

  • @gtyrozz
    @gtyrozz 6 років тому

    Good one! Once you mentioned that disregard to analysis, you wouldn't sell gold. Only buy. Isn't it survivorship bias, which makes you believe price will go up sooner or latter :)

  • @lewismomanyi7725
    @lewismomanyi7725 4 роки тому

    Great content and simple explanations for anyone to understand. Thanks Nicholas.

  • @DarkHill43
    @DarkHill43 6 років тому

    thank you so much for your hard working making these videos and sharing such knowledge to us

  • @wademoore6
    @wademoore6 6 років тому +8

    Proper education in trading (along with mentorship) increases the probability of being a successful trader. The Duomo Initiative has helped me turn my trading experience around for the better. Check it out and see for yourself. Become a "Traderpreneur".

    • @Duomoinitiative
      @Duomoinitiative  6 років тому +7

      Thanks Wade, much appreciated buddy. (Although I must admit, it does look a bit like I wrote it myself 😂)

    • @wademoore6
      @wademoore6 6 років тому +1

      Evidence that the message is getting through.

  • @troyyerman7282
    @troyyerman7282 5 років тому

    A good way to assess the probability of future price movements within a particular time frame is to look at the options markets. The more liquid, the better.

  • @vikasarsid1299
    @vikasarsid1299 3 роки тому

    Great video, I have seen 💯

  • @PlayThatGameDE
    @PlayThatGameDE 3 роки тому

    I just love you the way you deliver us these gems🔥

  • @scienceDon
    @scienceDon 6 років тому

    You are best trading tutor out there.

  • @DarkHill43
    @DarkHill43 6 років тому +3

    15:42 it reminds me of some guy that commented on one of your videos claiming that he holds a trade for about 1.5 year and got out in profit

  • @leviswm
    @leviswm 5 років тому

    Thanks for the down to earth trust worthy content.

  • @charlesnelson838
    @charlesnelson838 3 роки тому

    Gonna have to the this again I kinda get it but some kinda went over my head

  • @foreigncreations1793
    @foreigncreations1793 6 років тому

    I have to say from experience that knowing how to apply probabilities into your trading will make trading easier and will help you make money, a lot of money. Probability + risk reward. I'ts a numbers game use the numbers and you will make money, Good luck.

  • @paulbrown5839
    @paulbrown5839 5 місяців тому

    THe probability of your one trade working is the winrate you observed by backtesting 100s of trades in your strategy. That’s the best you can do to estimate the probability of a trade winning, surely.

  • @bestenchannel6077
    @bestenchannel6077 2 роки тому

    Gr8 contents channel. Well research topics

  • @leandrosales8154
    @leandrosales8154 5 років тому +1

    Thank you for the great content, man

  • @RedWinePlease
    @RedWinePlease 6 років тому

    My eval of this and other Duomo videos ===> Trading Wisdom.

  • @naturalmystique1237
    @naturalmystique1237 5 років тому +1

    excellent presentation. wish I had concentrated more on permutations and combinations during A-level maths ...or...was that at uni?

  • @butimahlangu5457
    @butimahlangu5457 5 років тому

    Thank you very much it's an eye opener

  • @Goldenpill
    @Goldenpill 6 років тому

    Im learning a lot from your videos. Thanks for sharing it all!

  • @mralanpo1
    @mralanpo1 6 років тому

    This video is amazing, thank you!

  • @vaibhavchikhale3441
    @vaibhavchikhale3441 5 років тому

    Great video Nicholas ....Thanks a lot ....

  • @laddoog5230
    @laddoog5230 6 років тому

    Thanks Nicholas ,very informative video.

  • @tradingespanol5384
    @tradingespanol5384 4 роки тому +1

    I want to cry because of the grestness of this video 😭

  • @keithrob1450
    @keithrob1450 2 роки тому

    Deep.

  • @ianrodriguez8525
    @ianrodriguez8525 6 років тому +2

    Very interesting and useful video as always. If you mind me asking Nicholas what are your thoughts on the RSI indicator?

    • @pithikoulis
      @pithikoulis 5 років тому +1

      You're missing the point.

  • @spontaneousbootay
    @spontaneousbootay Рік тому

    Mind blowing stuff. Also check out rande Howell

  • @massy2474
    @massy2474 5 років тому

    awesome content, THANKS

  • @desireeking3021
    @desireeking3021 6 років тому

    Excellent thank you!

  • @lenoxjhon1854
    @lenoxjhon1854 6 років тому

    In one of your video i think i heard you say when you first started you traded penny stock, if it so can you make a segment on your penny stocks strategy experience from scanning to fundamental research. I learn a lot from several of your videos,Thanks for shearing.

    • @Duomoinitiative
      @Duomoinitiative  6 років тому

      I haven’t traded penny stocks in probably about 8 years and I wouldn’t recommend it in general. I’m happy to talk about stocks overall though, there will definitely be stuff coming about that.

    • @lenoxjhon1854
      @lenoxjhon1854 6 років тому

      Thank you for the response and your honest recommendation about penny stock, I guest i should be able to use some of the INFO from your talk about stocks overall to trade penny stocks. Waiting anxiously Thanks again.

  • @ramizmasoodi6985
    @ramizmasoodi6985 5 років тому

    one of the best video i ever come across on youtube.

  • @computaga
    @computaga 6 років тому

    hi! thanks for all ur informative video, i just want to ask what is your trading process? i have mine too but im just a beginner so if theres anything ( i'm sure there is) that i can pick up from ur process thatll make sense to us it will be very helpful.. thank you so much!

  • @YaaALI313
    @YaaALI313 2 роки тому

    More about probalities maths science in trading please game Theorie deep knowledge

  • @jakubvalenta5403
    @jakubvalenta5403 6 років тому

    This is really great video 👍

  • @sharadagrawal8156
    @sharadagrawal8156 3 роки тому

    tooooo goooooood

  • @CiprianVatamanu
    @CiprianVatamanu 6 років тому

    Something changed in your editing ;))... but the info is still top notch ;))

  • @gidmanone
    @gidmanone 6 років тому

    hundred percent thumbs up-rate on UA-cam

  • @ippbrescia
    @ippbrescia 6 років тому

    Nice one! Thank you:)

  • @aweinfinitebliss
    @aweinfinitebliss 5 років тому

    Love your videos. Great insights. Smooth p/l 👍

  • @winstondoat8535
    @winstondoat8535 6 років тому

    Makes perfect sense 😐😐😐👏🏼👏🏼👏🏼

  • @Nipajim
    @Nipajim 6 років тому

    Definitely one of your best.. 😁

  • @fkmedia2275
    @fkmedia2275 5 років тому

    What's the name of the track that plays at the end?

  • @bibarishs3120
    @bibarishs3120 6 років тому

    Excellent

  • @markcooper6000
    @markcooper6000 5 років тому

    your first comment I would relate to you have a greater understanding through experience

  • @timskovbo
    @timskovbo 6 років тому +1

    You have more than 500 liks and just 2-5 no liks. that just confirm you make good video. you are nr one
    Tim from Denmark

    • @naturalmystique1237
      @naturalmystique1237 5 років тому

      It's 826:8 now . No reason to dislike this. The probability of say 5 wannabe traders per month surfing UA-cam, happening across a great video by chance and disliking it is moderate since there is still no app for UA-cam content providers to immediately chop off the thumbs of those who press the 👎 button

  • @bonganintshangase6051
    @bonganintshangase6051 5 років тому

    what"s your take on a winning martingale, where you double up after a win for 2 times and then after you revert back to the original position size?

  • @hamzabelas4173
    @hamzabelas4173 6 років тому

    hey, can you pleaze make a video about the U S NORMALIZING policy.

  • @kevinodego4272
    @kevinodego4272 4 роки тому

    1:51..if trading is a game of pribabilities is it safe to say that I can ignore all the technical and fundamental analysis and place random trade hoping probability will work in my favor..?

    • @Duomoinitiative
      @Duomoinitiative  4 роки тому +1

      No, by opening trades at random, your probability of succeeding over the long term will be low. Instead, finding ways that tip the probability more in your favour is a good idea.

    • @eichessdosted6019
      @eichessdosted6019 3 роки тому

      @@Duomoinitiative that’s exactly what I’m doing now... thanks very much 👍

  • @whitewolfgaming8220
    @whitewolfgaming8220 6 років тому

    hello i have been following most of ur videos and i am practicing the whole day but still cant win plz can u help me .

  • @ishtzedek
    @ishtzedek 6 років тому

    Good video

  • @emmanuelkiongo8151
    @emmanuelkiongo8151 4 роки тому

    if i don't have control will i even have profitable trades

  • @Sejdr
    @Sejdr 5 років тому

    it is easy to talk about probability and it sound fancy...but most people don't understand it and really doesn't understand how it applies to trading.
    That applies to this video as well! Amazing that you can claim to talk about probability but instead talk about psychological biases and poor RR-assessment.

    • @Duomoinitiative
      @Duomoinitiative  5 років тому +1

      You need to understand the audience we are catering for. They want to know how things apply to their performance and trading in a practical way. That’s what this video delivers. Not trying to sound fancy, just trying to provide value.

    • @Sejdr
      @Sejdr 5 років тому

      Re-reading my post I kind of sound harder than I mean too...My point is valid and I think you should have framed it as "pitfalls when dealing with probability in trading".
      Overall i think you are doing a great work, but hard love you know :)

    • @Duomoinitiative
      @Duomoinitiative  5 років тому +1

      I appreciate the feedback and do take it on board. I don’t mind a bit of tough love when necessary!

    • @Sejdr
      @Sejdr 5 років тому

      TY, Keep up the good work!

  • @allsam18
    @allsam18 6 років тому

    my first broker told me to trade only eco news with pending orders in both directions without stoploss... small wins big losses FML

  • @whitewolfgaming8220
    @whitewolfgaming8220 6 років тому

    i will be grateful if u help and and support ur Chanel

  • @frankhernandez7228
    @frankhernandez7228 6 років тому +1

    I use martingale in my trading but it’s much more then just increasing size every time u loose.

    • @buttmonkey1
      @buttmonkey1 6 років тому +1

      Hi Frank,
      We strongly recommend against using martingale, here is the video which explains why ua-cam.com/video/_oOiwpyFP_0/v-deo.html
      - Harley

  • @roopanshsehgal7441
    @roopanshsehgal7441 6 років тому

    Ever traded in Indian markets?

  • @qu1sk
    @qu1sk 5 років тому +2

    hmm i dont think that you can calculate probability in trading , there is NO backed data , its not a card game where you can say - oh i had 56% with that hand and invested XY so i will win over a long period of time .
    that what fuck all the calculation up is volatility and time (talking from the scalper propective)
    as longer you stay in the trade - the more chances are that you lose , since there is a unknown factor that is based on a chaos theory and not on a mathematical background
    so there is some truth to - you should trade very volatile markets since they incrase your chance be quick out of the trade

  • @JappaKneads
    @JappaKneads 5 років тому

    You sir...deserve more views and subscribers...unfortunately you can only subscribe and 'like" once....

  • @stevewitte2501
    @stevewitte2501 6 років тому

    Well, depends on the weapon being used. If its a .22 caliber, then your odds just increased to 8;1. The billionaire will lower his risk to 7.5 million which is still a fantastic risk/reward ratio. Hot damn...any billionaire's around. Lets Play!!!

  • @andreasultimate9978
    @andreasultimate9978 3 роки тому

    and we watch this for free

  • @CKMediaDesigns
    @CKMediaDesigns 6 років тому

    1st time being 1st

  • @Itsallgoodtogo
    @Itsallgoodtogo 6 років тому

    The only true judgment of a trader is his profit at the end of long session.
    Yes you might have made 50% in one month But please do tell us about the months where you were loosing.

  • @henrikvester7171
    @henrikvester7171 5 років тому

    Survivor Shit Bias :)

  • @nobertstanel9428
    @nobertstanel9428 5 років тому

    Great video. I recently had a chance to witness a Martingale Scale strategy in live tradin video. Absurd & nonsense. Guy lost protits of the whole week.

  • @JtagSheep
    @JtagSheep 6 років тому

    Martingale is insanely stupid I understand the theory behind it but it is a 100% loss strategy unless you have unlimited capital. Lost a trade ? dont bother doubling up on the next trade just take your loss and trade on keeping your risk the same. Any strategy that manipulates your money management for "recovery" will ruin you.

  • @DKM.23
    @DKM.23 4 роки тому

    Help me I’m an idiot! I’ve lost 2 thousand pounds by letting my trades run too long and now I’m in....let’s say, a pickle.

  • @iama10
    @iama10 6 років тому

  • @Duomoinitiative
    @Duomoinitiative  4 роки тому

    🔹 Get FREE access to the Duomo Trader Development Program: duomotrading.com/FreeDuomoTraining
    🔹 Add us on Instagram: instagram.com/duomoinitiative/
    🔹 Our second channel for financial news and analysis: ua-cam.com/users/MarketMoversFinancialNewsandAnalysis

  • @ponzianomanning3071
    @ponzianomanning3071 3 роки тому

    Much of what is taught in this video can be proven mathematically don't

  • @gm8226
    @gm8226 4 роки тому

    You give only heory you neaver teach to chart reading teqnics to amature traders font help to poor students and you are all subscription based teachers this is the real world

    • @Duomoinitiative
      @Duomoinitiative  4 роки тому

      That is just not true. We have over 500 videos on this channel, a free 2-3 hour free course and we do 30 min live streams on Facebook two times a week. We teach a lot about all aspects of trading, including chart reading techniques, without any subscription needed.