Stock trading for complete beginners

Thrugelmir

bulltraderpt wrote: »

You do know though don't you that in playing blackjack, with the same pack, you can gain a statistical edge which puts the player (over the long run), a head of the house.

That's why the shoe is only drawn down to a certain level. To minimise any possible advantage.

EdGasket

Thrugelmir wrote: »

That's why the shoe is only drawn down to a certain level. To minimise any possible advantage.

And usually multi-packs of cards per shoe. Plus you're out on your neck if they think you are card counting.

bulltraderpt

EdGasket wrote: »

And usually multi-packs of cards per shoe. Plus you're out on your neck if they think you are card counting.

Never played it, but it looks as though you as might have!

You got any of those books yet?

bulltraderpt

Thrugelmir wrote: »

That's why the shoe is only drawn down to a certain level. To minimise any possible advantage.

Only after it was discovered by a guy, the same guy who went on to make multiples of his many pot in the markets.:)

EdGasket

Edward O' Thorpe, Beat the Dealer. Then he managed to make some dough using arbitrage in the markets; don't think it would work now though. A clever guy but the one that fascinates me is Norman Leigh; Thirteen Against the Bank. He beat the casinos at roulette even though it has been proved his system can't work; and yet it did; maybe due to non-perfect wheels or just sheer luck.

And yes I have played blackjack and studied gambling theory, some of which is actually quite useful for stock market investment management. Like how much to invest, when to 'double-down' (buy more stock) etc.

bulltraderpt

EdGasket wrote: »

Edward O' Thorpe, Beat the Dealer.
And yes I have played blackjack and studied gambling theory, some of which is actually quite useful for stock market investment management. Like how much to invest, when to 'double-down' (buy more stock) etc.

I never knew there was a gambling theory?

I'd like to know how it's useful for the markets though?

As for doubling down, by that I think you mean loading up on a losing position to decrease your average, it's not something I usually engage in for obvious reasons.

Although truthfully I have used it in the last two trading days to great effect, although all positions were very close if not exactly daily lows before being bought up by others in the market. I rarely use it

EdGasket

bulltraderpt wrote: »

I never knew there was a gambling theory?

I'd like to know how it's useful for the markets though?

Just google it; there's plenty of books. I had a good one but can't lay my hands on it right now. The interesting bit is the 'return to equilibrium' which doesn't happen in roulette and other gambling games but does happen in the stockmarket for indices at least and most funds in the long run. This means you can if you so wish, use staking systems both pro and anti as you 'invest'.

OK the book is:
Casino Gambling - Why You Win / Why You Lose Hardcover – 1977
by Russell T. Barnhardt

bulltraderpt

EdGasket wrote: »

Just google it; there's plenty of books. I had a good one but can't lay my hands on it right now. The interesting bit is the 'return to equilibrium' which doesn't happen in roulette and other gambling games but does happen in the stockmarket for indices at least and most funds in the long run. This means you can if you so wish, use staking systems both pro and anti as you 'invest'.

Is this similar to returning to the mean (reversion) as it were, i.e the cure for low prices is low prices and the cure for high prices is high prices, or something like that.

EdGasket

Yes that sort of thing.

The book I have is now detailed in my previous post if you are interested.

bulltraderpt

EdGasket wrote: »

Yes that sort of thing.

The book I have is now detailed in my previous post if you are interested.

Thanks very much I'll have a look at that and the whole gambling theory thing.