i agree
Do most traders even have an edge?
- Thread starter empee
- Start date
i agree
You have an edge when there is a statistical confidence that you will beat the market.
Edge = A + B + C + ....
A, B or C is not an edge. A+B+C is not an edge. The proper combination of all the ingredients create an edge for yourself.
When a trader finds out that he can consistently beat the market, he will think he has found the edge. He will mention his edge as A, B or C. He has an edge, but he doesn't know all the ingredients. That is the reason why trading is hard to teach.
"A" might be part of your edge, but "NOT A" might be part of my edge. There is no "THE" edge. Edge is not unique. There are many ways of creating an edge.
Example:
Average down is usually described as bad, but some traders find average down works for them.
constant position sizing works for some, but pyramiding (or average up) works for others.
TA works for some, but random entry/exit works for others.
Edge = A + B + C + ....
A, B or C is not an edge. A+B+C is not an edge. The proper combination of all the ingredients create an edge for yourself.
When a trader finds out that he can consistently beat the market, he will think he has found the edge. He will mention his edge as A, B or C. He has an edge, but he doesn't know all the ingredients. That is the reason why trading is hard to teach.
"A" might be part of your edge, but "NOT A" might be part of my edge. There is no "THE" edge. Edge is not unique. There are many ways of creating an edge.
Example:
Average down is usually described as bad, but some traders find average down works for them.
constant position sizing works for some, but pyramiding (or average up) works for others.
TA works for some, but random entry/exit works for others.
***Quote from kiwi_trader:
That assumes that all edges significantly increase the efficiency of the markets. Fortunately they don't.
The answer (if there is one such thing) lies in these two responses.
A lot of the results of good trading are the result of the probabilities and discipline, however they usually (but not always) require a trader to implement their edge.
But just because you have an edge and implement it successfully, it does not guarantee the ultimte success of every trade which utilizes it.
Good trading,
JJ
edge is something aspiring traders long for!
they think you need an edge over someone or something in order to make money.
they think they are part of a large crowd and they need to be head and shoulders above the crowd and make money.
they also think this edge is something that comes from the outside in the form of a technique or information.
they think they have to be superhuman and come up with some dumb ass sh!t in order to achieve an edge.
to all i say:
chill the fcuk out!
the easiest thigs work the best.
4.5 min bars... sheesh... come on!
pick up an excel spreadsheet and input the daily values and see what you come up with. Unsubscribe from all your charting packages and learn to trade by looking at price alone because that is almost all you need.
i think the biggest problem nowadays is that everybody wants to sell you their sh!t. But guess what ... You don't need all that!
When you want a REAL edge, take this advice: BREAK AWAY FROM EVERYTHING!
they think you need an edge over someone or something in order to make money.
they think they are part of a large crowd and they need to be head and shoulders above the crowd and make money.
they also think this edge is something that comes from the outside in the form of a technique or information.
they think they have to be superhuman and come up with some dumb ass sh!t in order to achieve an edge.
to all i say:
chill the fcuk out!
the easiest thigs work the best.
4.5 min bars... sheesh... come on!
pick up an excel spreadsheet and input the daily values and see what you come up with. Unsubscribe from all your charting packages and learn to trade by looking at price alone because that is almost all you need.
i think the biggest problem nowadays is that everybody wants to sell you their sh!t. But guess what ... You don't need all that!
When you want a REAL edge, take this advice: BREAK AWAY FROM EVERYTHING!
yours is the only correct definition.
having an edge it's to have a known advantage over your competitors; can be just a little something yet what's enough to be amongst predators, confident in the long run to dominate. you have an edge when you posses or have developed a skill or a skill set that is allowing you to beat the competition.
having an edge it's to have a known advantage over your competitors; can be just a little something yet what's enough to be amongst predators, confident in the long run to dominate. you have an edge when you posses or have developed a skill or a skill set that is allowing you to beat the competition.
Over the years, the market has a negative net during regular trading hours; conversely, the net is positive when RTH's are excluded.
You are trading, long only, by doing turns that are infrequent and which last days on end.
Largely, you are making money when the markets are closed and, further, you compare your approach to traders that only trade during RTH. These traders may have the same non neutral bias that you do.
Step your thinking up a few notches by using even and odd numbers to achieve something or other. Leave the five's theory to blackjack.