Back when I played poker professionally, I entered thousands of tournaments. I would grind tournaments and sit and go’s all day, every day. While I learned many new things each day, the lasting lesson I took away from this very profitable experience was: It’s not about the great hands you play and win, it’s all about the great hands you are dealt but able to walk away from and fold. This lesson helped guide me to dozens of multi table tournaments wins and it has works the same in Day Trading.
Anybody can win a hand when they are dealt pocket Aces AA, or AK, AQ, AJ but how many people are able to fold these powerful hands?
The answer: Very few. Similar to how very few traders have the ability to consistently walk away from trades. Think about how many times traders start the day with some quality profits, only to give it all back because they couldn’t walk away from more and more traders.
In poker, sometimes you are better off folding Ace Jack when there are two raises in front of you, just how you are oftentimes much better of skipping a trade, even if you think it may have some potential. Watch todays video recap - I folded and walked away fom 2 trades that got crushed. Saved the day and the weekend from only thinking abou the losers and not anyhting won. Typical for 9 out of 10 traders but opposite for MOJO traders. Life is Good when you have a system that works and is tested and proven by many others.
The idea really comes back to always trading with positive expectancy, a foundation of MOJO Day Trading. If the trade does not have clear positive expectancy, MOJO folds. There is no reason to risk a losing trade when the MOJO system has been built to win. Forcing trades is how you lose, just as how playing too many hands in poker is a sure way to lose your chip stack.
Think of it this way, if you could long jump 8 feet in front of you from point A to point B with ease and there was a 10-foot-long puddle in front of you, would you take the risk?
Well, you could possible make it. Perhaps you will have an especially far jump and you will clear the puddle. But, on the other hand, there is also a very high likely hood that you will land in the puddle getting yourself soaking wet.
At MOJO Day Trading, we are passing on that jump 100% of the time. Deciding to take that risk is a negative expectation decision. It is asking to fail and it is asking to lose.
At MOJO, every single decision is made with winning in mind. Every trade is specifically chosen due to its positive expectancy. If the trade is questionable, then there is no question that MOJO will pass and wait for a better opportunity.
That’s the difference between holding and folding. As the great Kenny Rodgers said, “You have to know when to hold em and know when to fold em.” Truer words have never been spoken.
In the end, it’s not always what stocks you trade, it’s what stocks you don’t trade.
P.S. Make sure to watch the 1/8 MOJO Day Trade Room Video Recap to see how ProTrader Mike and the MOJO ProTraders made the fold of the year to ensure a very profitable Friday: