hmm.no edges in the markets

Quote from marketsurfer:

I don't question that psychological aspect is critical, it's not an edge. An edge is something like arbitrage that functions mechanically once you crack the code. I'm not trying to dismiss the importance of self control, and other psych factors but to call these thing edge is a misunderstanding of the term. All the psyche in the world can't make a losing system profitable.

Just to be clear edge is over the market, not over yourself
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there is the edge that the street has over you,it's psychological edge,for instance at the moment we are coming into end of month,9 1/2-10 1/2 times we rally(no stat just a gyst) so you think a rally into thur is likely,they can pull the rug anytime they want,recognizing those instead of sleeping walking your acct into their pocket is an edge
 
Quote from marketsurfer:

Being taught edges that work at a prop firm makes sense.

Do you folks not believe prop firms teach edge? I don't get the animosity.
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Cui prodest? What is the purpose of teaching someone how to exploit real edges?
 
Quote from jack hershey:

I was automatically cited by the SEC while using charts and past price of single instruments. when I was cited, it was specifically in reference to a specific single instrument.

The SEC, at that time, was profiling traders who behaved in a particular manner..............
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I can verify that everything quoted by jack is 100% authentic and if anything understates his importance as a mover and shaker, not to mention an unsung hero and benefactor to millions.
 
Edge negates the need for a good trader.

It comes from the tools and the platform.

Access to deal flow: Top tier VC firms whose stamp of approval can make a start up. Those who get hot IPO allocations.

Access to non-profit motivated counter parties: Banks who trade with hedgers who are okay with losing money on that particular trade.

Access to information: corporate executive who has his pulse on his industry better than anyone on the outside could. Bud Fox on a motorcycle.

Market Participant Inefficiences: you know a central bank has to devalue; it will be too big for anyone to stop the currency move.

Financing: big bank can hold certain trades because they can finance them cheaper.

These are real edges.
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Are they? Sound like situational advantages to me, and thats not to take anything away from their value, we can find situational advantages left right and center, a fund accumulating a large position vs a trader of 100 shares that gets an instant fill and the flexibility that comes with that, is that an edge?

I have always veiwed an edge as more than a situational advantage, as they come and they go, and they are of a million shapes and sizes, some with a lot more value than others, the only edge worth having for retail level is the ability to trade any market long term consistently, out of your own skill.
 
Personally I don't have any edge, but I am thinking anyone who possesses the ability (and time - reading over 600 replies in this thread alone by now) to fully understand/ comprehend this kind of ET discussion (ongoing for so many years) about Edges could have a Real edge!
 
Quote from sheda:

Are they? Sound like situational advantages to me, and thats not to take anything away from their value, we can find situational advantages left right and center, a fund accumulating a large position vs a trader of 100 shares that gets an instant fill and the flexibility that comes with that, is that an edge?

I have always veiwed an edge as more than a situational advantage, as they come and they go, and they are of a million shapes and sizes, some with a lot more value than others, the only edge worth having for retail level is the ability to trade any market long term consistently, out of your own skill.
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Being small is an advantage. But not really an edge as most investors are small.

These "situations" are persistent. Kleiner Perkins gets the look on every start up.
Warren buffet has gotten favorable deals for 30 years.
Banks have a funding advantage over everyone else because they have deposits and the fed window.
 
Quote from newwurldmn:

In formula1 some teams and drivers have an edge. Ferrari has an edge because they can outspend virtually every team. It's why mediocre drivers: Barricelo and Massa can win races and great drivers struggle with mediocre teams.
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That statement shows you do not know "shit-from-shinola" about Formula 1 racing. Where are the RED racers in the standings of drivers and construction? The myth is old and outdated at best.

Folks, understand this: a so called edge is nothing more than a figment of the imagination. In trading your skillset matters and indeed can be called an edge over the others which use osmosis. Edge resides in the mind and no where else. Ability must not be confused with being a myth, ability is there, edge is not. :D
 
Ferrari stands alone on top of the all time list.

http://sports.yahoo.com/f1/news?slug=ycn-8030784

If you research Google carefully, you'll find out the WHY (edge) the Ferrari teams have an edge over others in the past that has recently changed involving the types of tires being contracted and financial strength. In contrast, this years standings has my favorite Red Bull Racing-Renault on top.

http://www.formula1.com/teams_and_drivers/

Here's a few recent articles where most F1 racing teams are finding their edge and what they consider to be a critical race issue involving their pit crews.

http://www.avtimes.net/cmlink/gmg/c...n-seeking-elusive-2-second-pit-stop-1.560035/

My favorite paragraph from the above article is this involving another edge some teams are working on...

...Williams has partnered with Olympic champion Michael Johnson's Performance Center to work on everything from diet to eye-hand co-ordination to core strength.

Training has also been ramped up. Most teams have rigs to practice on in the factory and pit stops are practiced as many as 70 times over a typical race weekend. Each stop is timed and videotaped for later review...
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I'm now curious about how many traders do videotaped trading sessions for later review by them or others...would it contain invaluable information to help a trader improve his/her performance.

Anyways, like I said many times...their are many types of edges that a person can develop to get a competitive edge. Simply, traders that run around believing there's only one type of edge and it only involves their trade method...good luck with your trading career and mental/physical health. :D

You need a complete trading plan and several different edge types beyond the trade method to endure/adapt every trading year.
 
Now the edge resides in the mind.
Now edge is psychological.
Clearly not a system traders?
This thread should be closed with edge resides in mind, a fitting end to thread title.

Perhaps you mean the performance based aspect of this business.

Trading is performance-based BUT you must have a systematic edge to last...positive expectancy (or Over time, you are going to have winning results).
Expectancy E = (% winners * Avg win) + (% losers * Avg loss)

Everyone should be able to collect the numbers and be able to calculate the expectancy of their strategies. Log/Journal.
 
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