Edge

Quote from xelite777:

Theoretically you are absolutely correct TradingJournals, but buying bottoms and shorting tops is extremely hard to do consistently.

It is much easier to just follow an existing trend and capture the "meat" of the move that way.

Just my opinion though, the astute trader can make money either way of course, if he/she knows what he is doing.

PS: I am not talking about these bottoms of course, they are relatively easy to "buy", or should I say "borrow" :D

minimal-coverage-brazilian-cut-bottoms.jpg
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That ass is not even a 3 out of 10. It does not make one think of 2 well rounded basketballs side by side. Showing some flatish cheek will not cut it, a great ass needs to protrude "OUT" toward you to get the senses going.

I fondly remember once walking on Michigan Ave in Chicago on a fine spring day and a gal in front wearing a silk dress thrilled me as one cheek complimented the other in movements.......... I will carry that vision to the grave :cool: :)
 
Quote from dbphoenix:

You're trivializing "edge" to the point where it becomes meaningless. If confidence is an edge, why not hair color? Most traders are confident. That's why they think they can beat the market with no trading plan or even a basic knowledge of how markets work.

Your edge begins with the knowledge you gain through your research and testing that a particular market behavior offers a level of predictability and a profit to loss ratio that provides a consistently profitable outcome over time. It has nothing to do with how much sleep you get each night.
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+10

I tried educating him on why he was wrong about position sizing. You can lead a horse to water but ...
 
Quote from xelite777:

Pfffff....Zero risk is for amateurs, I trade with below zero risk, in other words the market PAYS me instantly when I initiate a new position. In fact, the market is the one taking all the risks when I trade, try to beat that Jack :D
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Pffff on your Pffff. The big players send me a cheque everyday if I promise not to trade. They know that my positions would suck all of the traded money into my account like a hoover. :)
 
Quote from BonScott:

Pffff on your Pffff. The big players send me a cheque everyday if I promise not to trade. They know that my positions would suck all of the traded money into my account like a hoover. :)
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Pffff... And who do you think loans the money to these big players so they can pay you...? Me of course :p
 
Quote from tradingjournals:

Did Jack read this?
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I read it and I replied with this:

Nailing is important to do. I Nail using a complete system of the market's operation.

You are an advanced beginner lets assume. Your group of potential traders could think about doing what you wrote in your post above.

I do not buy at the bottom or short at the top. Entry/exit type trading is not something I would consider at all.

I do not even do edge type trading.

Nailing means different things to different people.

I do events type trading. An event that causes me to act is what I call a turn. There are three kinds of turns and they occur in any of the four types of trends.

I find it helpful to always know what type of trend I am in. Then, knowing this, I determine a turn has occurred and I act upon the turn to do one thing: take a profit segment. Since I act the way I do I am in a new hold. This new hold is on the correct side of the market.

I have typed many morsels above. They each have one common aspect: they eliminate risk in doing nailing when an event occurs.


What I notice is that I do NOT look for tops or bottoms. I do NOT have criteria for a top or a bottom.

I only do one routine: look for lock-in on price then look for lock-in on volume then look for lock-in on an event. I act when an event occurs. I hold when only price then volume lock-in on a bar. (Lock-in means the defined name has met the expression in math that the name stands for.)

My action locks-in a profit segment and gives me a new position to hold as new profits accumulate.

At day's end, I can look back at my notes on the chart and log and I notice there are tops and bottoms and I usually (not always) have an event note at or near a top or bottom. My prints confirm my notes and logging.

From this experience I set goals. They are simple.

1. I figure out how many points I need to double. (20)

2. I figure out how many points are offerred each day. (12 is my view)

3. I figure out if I trade each day during the day I can achieve 2. that allows me to achieve 1.

4. When I look at my routine, I see I have more opportunities to nail than I need.

5. Because of 4 I never feel rushed about nailing.

6. if I nail as I can, the 5, 4, 3, 2, and 1 take care of themselves.

Today, I looked at the seconds invloved in acting; on my platform. The print showed 9 seconds.

In conclusion, I feel I have defined for me what you mentioned as risk. I feel my risk is zero and my results are good enough.
 
You should re-read what I wrote. At a bottom the risk is zero. I did not write that zero risk is only at a bottom. Among all points with zero risk among all traders, the point with the highest reward is the bottom. But one can get on a leg somewhere in between, and nail his relative zero risk which is his point of entry.

Nailing bottoms is not what one should look for, but I am making this precision so that you see that what you wrote may not be accurate. What do you think?
 
None of this is edge. Here is edge.

1) Only take trades that have positive expectancy to reach a profit before the stop is hit.

2) Even trade are fine with equal risk vs reward if your win% is high. Edge is about statistical proven strategies.

3) Most people don't have the possibility of an edge, or there would not be an edge.

4) The edge is only 20% of a trading plan, the rest is determining risk vs reward, managing a trade, not getting emotional and revenge trading, risking a % of capital in line with your risk. For example, if you have an 80% win ratio, you should be risking much more than 1 % of your capital.

Quote from Yukoner:

Reading through 200 plus pages of another thread on edge, which quickly turned into something else, wasn't what I wanted to reply to... So here is the start of ways we can gain EDGE as traders.

We all have the possibility of an edge, because the one thing we can control is ourselves.
Here are some fast examples that will give you an edge over other traders.

1) only take trades were you expect to make 3 times your risk (helps create positive expectancy)

2) only trade when you have had a normal nights sleep (8hrs for most of us, we take on more risk when we are tired)

3) only risk 1% of your account balance on any single trade (makes for fairly boring safe trading)

4) only trade a system that is robust and will work in all time frames and all markets (this helps stop you from using TA to fit the market to your bias)

5) limit your trading hours to only trade your peak performance time (imagine the problem if a pro quarterback was trying to play three games a day, 5 days a week)

6) take lots of breaks away from the market to recharge your mind and body (something prop traders can't do, as they are expected to show up every day)

Anyone of those 6 are factors that any trader can control, and those factors will give you an edge... And there is plenty more out there that can be done.

Edges exist!

Good Trades,
Yukoner
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Really there are only 2 kinds of 'edge'; information and latency. Latency is obvious, if you can hold off and wait for more reliable information and still beat everyone to the trade you're golden, this is probably the most expensive and competitive edge. Information edge is the real grey area because until the actual economic number is released or an unexpected geopolitical occurs it's pure speculation.

Not to say that you can't make money using technical analysis and price action, it's just a duller edge so you better make sure you're armor is nice and thick so you can keep swinging.
 
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