March 19, 2020

The Important Concept of Expected Value

Many traders look at their win to loss rate when evaluating their trading.  This is an important concept, if you are right way more than you are wrong, you probably are not going to enjoy much success.  But, many are missing one part of the puzzle, expected value.  Not only IF you are right or wrong, but what happens when you are?  If you are right 99% of the time yet blow out your account on the one time out of 100 that you are wrong, you are still sunk.

Click the video below to see me break down this important topic

Follow me on Twitter: @MikeShorrCBOT

about the author:

Mike Shorr

Since 1994, Michael has been an on-the-floor market maker, Vice-President of Interest Rate Derivatives for Knight Financial Products and Director of Education and Options Instructor at Trading Advantage. He makes the oftentimes complex world of options and trading accessible to the novice and advanced trader alike. Michael has a Bachelor of Science degree in Statistics and Finance from the University of Illinois Champaign-Urbana. He presently is Director, Trader Education at ProsperTradingAcademy.

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March 2026 Jobs Report: The Good, Bad, & Unexpected

The March 2026 Jobs Report was among the most anticipated ones in recent memory. Right now, the economy is being shaped by a number of factors: These current circumstances — combined with February’s bad jobs report — had traders preparing for the worst. Fortunately, the March 2026 Jobs Report looked much better than expected…at least […]

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June 8, 2026

Nvidia’s Demand Problem Could Be A Trader’s Opportunity

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June 7, 2026

The Week Ahead: Just A Minor Selloff, Or…?

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June 5, 2026

Bitcoin Dethroned: Is a Replacement on the Horizon?

Bitcoin has been under serious pressure in 2026. Year-to-date, it’s down over 31%. When a prominent asset like Bitcoin falls this hard, one question always comes to mind: Is something else about to take its place? It’s a debate that resurfaces every time Bitcoin stumbles…and so far, its resilience has proven doubters wrong… But could […]

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