Let's play a game that could change your life... It's a trading game. Here's how it works...

These Marbles Determine Your Success as a Trader By Pete Carmasino, chief market strategist, Chaikin Analytics Let's play a game that could change your life... It's a trading game. Here's how it works... Each player starts with $100,000 in fake money. The game operator has a bag of marbles. Each marble represents a trade result. So the bag is filled with "winning" and "losing" marbles. The game operator draws 50 marbles, one at a time. And players can bet any amount they want before he picks each marble. The goal is to have the most money at the end of 50 rounds. You just need to bet on the outcome of each marble draw. And here's the kicker... The odds are in your favor. You see, 60% of the marbles represent winning trades. The other 40% are losers. Sounds easy, right? You'd think that any decent trader would come out ahead in this scenario. And you'd think that some folks would end up with big profits on their fake money. But after all 50 rounds, the game operator shares the results. They're shocking... Recommended Links: 'Civil War in America? It's Much Closer Than You Think' Most Americans don't believe another civil war is possible... because they have no idea what modern civil wars look like. Yet America's leading PhD scholar on the subject says, "We are closer to civil war than any of us would like to believe." Porter Stansberry says a civil war is not only likely, but inevitable. His recent interview details exactly what it could look like, how it will start, and why. This is a must-watch new interview. See This Before You Buy (More) Bitcoin Amid stocks faltering and global tensions rising, bitcoin is now closing in on $100,000 after shattering its previous all-time high. So you may be wondering – is it time to buy? Should you buy more? Or did you miss the boat? If you're asking those questions, see this immediately. Only about a third of the players made a profit. The other two-thirds lost money. And of those losing players... half are completely broke. Everyone followed the 50 marbles in the same order. But there was one big difference... How they bet. On any given trade, most people just bet an amount that "feels right." Sometimes, betting what feels right works. Dumb luck can lead the trader to a winner. But as this trading game shows, it could make you broke over the longer term. Legendary trader Van K. Tharp popularized the "marble game" at his seminars... Tharp earned a PhD in psychology from the University of Oklahoma Health Sciences Center in 1975. That became the foundation for his unique approach to trading. In short, Tharp emphasized the importance of having a trading plan and sticking to it. Related to that, the marble game is a classic lesson about position sizing. Think about the jar of 50 marbles... Tharp blindly pulled one marble out at a time. So the people playing the game might've needed to deal with two, three, or even more losing marbles in a row. Imagine if they risked 10% or 20% of their fake money on each losing marble. A string of losses with that type of position sizing could spell ruin fast. But what if they only risked 2% of the $100,000 on each trade? That would allow these folks to endure three straight losses more easily. The marble game proves that good money management can turn an OK system into a winner. And bad money management can ruin even the best system. Tharp's marble game is a smart, hands-on way to learn about trading risk. Ultimately, the correct position size for any trade is a personal decision. And two concepts help define the risk you take on... One is the actual willingness to take on that risk. The other one is the capability to do it. Of course, I don't know your specific risk tolerance... So the best I can do is discuss position sizing with a hypothetical account size... such as the $100,000 I used earlier. Then, the next step is to add a hypothetical percentage of risk to take per trade – like the 2% figure I mentioned. First, you need to decide how much cash you can comfortably risk on each trade. After that, you can determine the size of the position. No matter what specific numbers you come up with, the key is to make sure your portfolio can withstand a few losses. Even when the odds are in your favor, Tharp's game shows that it's possible to pull multiple losing marbles in a row... and keep on trading. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.33% 9 16 5 S&P 500 +0.05% 137 277 82 Nasdaq -0.06% 29 58 13 Small Caps +0.13% 581 952 382 Bonds -0.32% Health Care +1.18% 6 40 14 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Utilities +2.73% Energy +1.94% Real Estate +0.35% Communication +0.14% Materials -0.26% Financial -0.46% Staples -0.8% Discretionary -1.72% Information Technology -1.78% Industrials -2.33% Health Care -2.69% *  *  *  * Industry Focus Retail Services 14 40 24 Over the past 6 months, the Retail subsector (XRT) has underperformed the S&P 500 by -7.80%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #12 of 21 subsectors and has moved up 1 slot over the past week. Indicative Stocks CRMT America's Car-Mart, FIVE Five Below, Inc. DLTR Dollar Tree, Inc. *  *  *  * Top Movers Gainers KEYS +8.78% HUM +5.83% CSGP +5.8% EQT +5.58% SW +4.78% Losers TGT -21.41% SMCI -8.74% QCOM -6.34% MPWR -4.41% DG -4.22% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close DE CPRT, INTU, NTAP, ROST No earnings reporting today. Earnings Surprises SNOW Snowflake Inc. Q3 $0.20 Beat by $0.05 TGT Target Corporation Q3 $1.85 Missed by $-0.45 WSM Williams-Sonoma, Inc. Q3 $1.96 Beat by $0.19 NVDA NVIDIA Corporation Q3 $0.81 Beat by $0.06 PANW Palo Alto Networks, Inc. Q1 $1.56 Beat by $0.08 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.