Image source - Pixabay

So many traders haven't really understood the difference between possibility and probability. They interchange one for the other. But the truth is that - these are very different terminologies. When you understand this concept of possibility and probability very well, you may be able to have better performance in the markets.

Primarily, probability is when there's more than a 50-50 chance of your prediction coming in. Let me put it better for your understanding - When a market is in a bear, you're more probable of making successful trades when you sell. It doesn't mean that you'll win all sell trades, but there's more probability in your favor that you'll be successful trading it down.

Kindly take note, in this article I'm making emphasis on manual trading - in which case you have to be making decisions on buying or selling. In such a case, you may have to be monitoring your trades from time to time. As a result, you'll tend to need better understanding of probability and possibility.

Image source - Pixabay

Talking about possibility, this is basically when there's a 50-50 chance of things working out in your favor in the crypto market. Here's an example, when a market is bear - it's probable that you'll make profits trading that market down. That is, going with the bear.

But it's very possible that even in a bear market, a trader may place a sell trade and still lose - no matter how high the probability of success is. Nothing is certain in the crypto markets. Possibility makes you know that anything is possible, hence you need to trade carefully. While probability is the chance for success that makes you take the risk and place trades.

Thanks for reading!