A trading edge is the easiest thing?
- Thread starter livermoreorless
- Start date
To start with, NYSE trades in USD and LSE in GBP. Then, you cannot sell ADRs in another market. You must offset each position in its own market while you are facing exchange risk and bid/ask spreads plus commissions.
Do you know what fx risk is?
Some forex market maker decides to take your hypothetical edge away from you by buying USD against your position in LSE. Be sure, there are many waiting to screw suckers like that. When you offset, your gain dissapears after you convert to base currency, assuming it is USD.
I know, I know, there are some newbies that watch same company stock traded in different markets and they think it is easy to make money. Someone else is watching, you ought to know that...it is called MM...
there is no such thing as an edge. everyone can learn to swim. if you see someone who can and you can not, that does not mea he has an edge.
the only difference between you and that guy is you do not trust yourself abd belittle yourself since you believe you do not have en edge, people who can swim has an edge.
in trading, the same applies. most people are impatient to themselves, they are too negative to themselves, they are lazy,
they think they are inferior to others, particularaly in trading.
the truth is if you trade what you see, not what you think, you can cut loss easily, you let the profit run easily. there is no edge thing there. the culpit is you do not work hard to yourself or you do not trust yourself or you are suspicious of your capibilities. that is why in the reality, 10% richest guys rule 90% poor middle class guys. 10% 90% sounds very familar numers, ah
the only difference between you and that guy is you do not trust yourself abd belittle yourself since you believe you do not have en edge, people who can swim has an edge.
in trading, the same applies. most people are impatient to themselves, they are too negative to themselves, they are lazy,
they think they are inferior to others, particularaly in trading.
the truth is if you trade what you see, not what you think, you can cut loss easily, you let the profit run easily. there is no edge thing there. the culpit is you do not work hard to yourself or you do not trust yourself or you are suspicious of your capibilities. that is why in the reality, 10% richest guys rule 90% poor middle class guys. 10% 90% sounds very familar numers, ah
Ridiculous. Anyone can learn to swim, but some will swim better. I would say Michael Phelps has a bit of an edge. I can see him swim, but I cannot swim as well as he does. You need to go back to the analogy well and come back with something else.
---The only true edge in successful trading is capital and the use thereof-----
Absolutely untrue.
Where do you think UBS, Morgan-Stanley, Bear and others made thier profits the last decades? They arb. They have expensive quant and other facilities to take advantage of market inefficiencies (even very short term). They offer advantages to wealthy clients, for example, trading stocks or instruments internally to save $$$ and fees. Offering prudent advice, etc,. Else, the customers would leave in droves.
Where do you think those who have outperformed for 20 years made their money? Luck?
You either have a way to overcome all the trading costs and make money, or not. That is called an edge.
Of course it is not worth your time. You thought you could say a lot of unfounded things that were very incorrect, and everyone would fall over and pour effusive gratitiude all over you. You are a long distance from a knowledgeable trader.
If you don't like criticism, then stop spouting things you don't understand. Some people actually know what they are talking about, like a lot of people on this forum.
And now you will run away, because people were mean to you and didn't support the poor little man? Welcome to internet posting 101.
Trading edge is not easy. If you are discretionary trader you cannot separate edge from discipline. Without learning discipline whatever technical edge you have is almost meaningless. If you are automated trader, which I am not and just speculating here, but seems to me then technical edge is more significant then.
The 95% loser stats probably has much to do with the fact that there is no weeding out of potential traders. Anyone with some money and a computer can become a trader. Other professions weed out poor candidates beforehand.
Look at it this way, out of all the people who at one point in their life say they want to be doctors, how many of them actully make it? Not many. But if you want to be a trader, there is going to be a broker out there that will make you a trader.
Look at it this way, out of all the people who at one point in their life say they want to be doctors, how many of them actully make it? Not many. But if you want to be a trader, there is going to be a broker out there that will make you a trader.