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Showing posts from May, 2024

The True Laser Vision in Trading: Projecting the Value of Your Account

It's quite common to see profile pictures of traders using visual metaphors like "laser vision" to convey the idea of focus, precision, and determination in their operations. These representations often symbolize the trader's ability to identify opportunities and make decisions quickly and accurately in the financial market. However, beyond intuition and instinct, which reduce laser vision to a graphic metaphor, nonexistent in the real conditions of trading, there's a fundamental tool that acts as the true "laser vision" of the trader: the expected value of returns. The expected value of returns is a measure representing the average return expected from a series of operations based on a trading system. It's like projecting the future value of our own trading account, allowing us to focus on a fundamental aspect of trading: growing our accounts. Let me ask you a question: what's more important to you, being able to project the price of an asset in...