I wanted to start a thread here, partly to introduce myself to the group, and to submit a few thoughts and questions I have about trading. I've been lurking here a while, but almost never post.
It seems like three things are necessary to make money trading in the markets. So many of the threads here are directly related in one way or another to one of these three points.
1. Find an method that gives you an edge.
2. Follow the method precisely, and have the faith to stick with it through drawdowns.
3. Size your bets so that there's little chance of going broke if you're wrong.
My experience is in a related field (gambling) where steps 1-3 apply. But in my case, the edge can be mathematically determined with 100% certainty. Cards and dice, while random, follow the rules of the game and can be exploited. Unfortunately, it's not a ATM machine, as eventually you won't be allowed to play anymore. Hence, my interest in the markets, cause you can bet as much as you want, and can't be thrown out.
I've mastered these steps in my own business, and I think #2-3 are directly transferable to trading in the markets. But I keep coming back to, how do I find an edge?
Finding a method that I can believe in seems to be the problem. There are so many systems and so many methods pushed around that it is almost overwhelming. And short-term success doesn't necessarily mean the trader had an edge, they could have just been lucky. So how have the successful traders here found a method that works, and how do you know it when you see it?
Traveler
It seems like three things are necessary to make money trading in the markets. So many of the threads here are directly related in one way or another to one of these three points.
1. Find an method that gives you an edge.
2. Follow the method precisely, and have the faith to stick with it through drawdowns.
3. Size your bets so that there's little chance of going broke if you're wrong.
My experience is in a related field (gambling) where steps 1-3 apply. But in my case, the edge can be mathematically determined with 100% certainty. Cards and dice, while random, follow the rules of the game and can be exploited. Unfortunately, it's not a ATM machine, as eventually you won't be allowed to play anymore. Hence, my interest in the markets, cause you can bet as much as you want, and can't be thrown out.
I've mastered these steps in my own business, and I think #2-3 are directly transferable to trading in the markets. But I keep coming back to, how do I find an edge?
Finding a method that I can believe in seems to be the problem. There are so many systems and so many methods pushed around that it is almost overwhelming. And short-term success doesn't necessarily mean the trader had an edge, they could have just been lucky. So how have the successful traders here found a method that works, and how do you know it when you see it?
Traveler
