Only Take High-Percentage Shots

In basketball, you always want to take the highest-percentage shot available to you.

A 3-point shot from the logo, or forcing a shot when you are being double-teamed, is considered a low-percentage shot.

Sure, you could still make the shot. But that still doesn’t change the fact that it is a low-percentage shot, and by doing it enough times, you will see that your actual completion rate will be rather low.

A dunk or a lay-up is considered a high-percentage shot because the odds of making it are considered very high.

Sure, there have been missed dunks or missed lay-ups in the NBA, but these are few and far between. And the fact remains that dunks and lay-ups are always going to be high-percentage shots.

My point is that as traders, we always want to take the trades with the highest chance of success.

Sure, you could take a risky trade and still end up winning the trade. It happens.

But the law of large numbers will show you that by doing this often enough, you would end up failing big time.

Play it safe. Be very selective. Be very disciplined.

Don’t take trades which do not match every single criteria of your trading strategy.

At least you will know that the law of large numbers is on your side.

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