OTA instructor Rick Wright likens them to the x-rays you get at the dentist’s office, to see what’s happening “inside.” Sam Seiden makes the comparison to going to Vegas with an unfair advantage in your favor. And Brandon Wendell tells his students to think about a scalding glass of hot water that you will quickly let go if you grab it. They’re the Online Trading Academy odds enhancers—and they’re a key consideration in applying the patent-pending supply and demand trading strategy we use to anticipate market turns with a high degree of accuracy.
The full set of odds enhancers (there are eight altogether) is only available to students who have enrolled in the eXtended Learning Track (XLT) and have the trading experience and fundamental knowledge to apply them effectively. But you can read more in some of our Lessons from the Pros articles from OTA instructors.
For example, Brandon’s analogy to the glass of hot water illustrates the importance of watching the strength with which price leaves a supply or demand zone. If you grab a hot glass you’ll release it immediately. Similarly, when prices touches a level where there is an extreme imbalance of supply and demand, then it will leave that level quickly and in a strong move. Seeing that activity on a chart, combined with correctly defining the supply or demand zone to begin with, improves the odds that the trade will move in your favor.
Another important odds enhancer—which can be applied by even the novice trader, once you know what you’re looking for—is to analyze the risk/reward ratio of the trade you’re considering and be sure there is at least a 3:1 probability of the trade moving in your favor. In other words, if the distance between current price and your protective stop (the point at which you’ll exit if the trade goes against you) is 2 points, you’ll insist on at least a 6 point potential move in the opposite direction. This quite literally changes the odds in your favor and ensures you can be “wrong” on some trades and still make money.
While you’re perusing our educational content, be sure to check out the other topics on trading essentials, risk management, specific asset classes and more. These articles are a great place for the new trader to start and a useful refresher course for the more advanced trader. And best of all, they’re free.