Questions a new trader should ask

[bone]

Quote from 1a2b3cppp:

[B- having a huge account size so that you can keep averaging down into your position no matter how far it goes against you and eventually exit for a profit. In this case, your account size is your edge [/B]

When I first read this, I thought it was a sick joke.

Nobody's account size could possibly be an edge. Nobody's account size can outlast the market. There are IB's and HFs worth many billions of dollars who have blown out from crap trading positions. To imply that an individual could is of course complete nonsense.

 

[1a2b3cppp]

Quote from bone:

When I first read this, I thought it was a sick joke.

Nobody's account size could possibly be an edge. Nobody's account size can outlast the market. There are IB's and HFs worth many billions of dollars who have blown out from crap trading positions. To imply that an individual could is of course complete nonsense.

Most likely because they were over leveraged

 

[EPrado]

Quote from intradaybill:

+1

Major edge.

It's a major edge if your goal is to blow out your account. This strategy ends more trading careers than any other reason.

"The market is wrong and I am right......I'll just keep averaging down until it goes my way".

 

[1a2b3cppp]

Quote from EPrado:

It's a major edge if your goal is to blow out your account. This strategy ends more trading careers than any other reason.

Cuz they don't do it right.

Of course, being able to correctly predict direction means you don't have to average down; you can go all in in the correct direction from the beginning, which is going to result in significantly higher profits which will come much quicker, too, because you don't have to wait for the market to reverse and go in your direction before your position becomes profitable.

Clearly, predicting direction is the superior strategy... I've just never met anyone who could do it.

 

[Free Thinker]

Quote from ziyan:

edge? What questions should I be asking to be a better trader?

do i have enough money to survive the learning curve.

 

[murray t turtle]

Quote from 1a2b3cppp:

"edge" is the most overused term here on ET.
"

All an edge means is the thing that makes you profitable. Here are some examples of edges:

- having a holy grail indicator or an indicator that has a winning expectancy (hint: none of the commercially available indicators, or indicators you will read about online, fit this criteria). In this case, your indicator is your edge.

- having a huge account size so that you can keep averaging down into your position no matter how far it goes against you and eventually exit for a profit. In this case, your account size is your edge

=============
That huge account edge... averaging down, no matter...;
sounds like witty sarcasm designed to teach a lesson he
will never, NO NEVER forget LOL?bellylaugh!

However the first 3 points are good/cool/helpful

Another way to get an edge;
find out how top traders or simply profitable investors use the word ''edge''
a]Market Makers Edge by Josh Lukeman{market maker, & bro of Noah Lukeman}. However notice i used the words investor & frankly i ignored his Daytrade subtitle & focuse on his multimonth candlecharts-another edge.
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

Z] In fairnesss to trading question, another way edge is used by a top trader.
Rich ''Turtle'' Dennis/Jack Schwager Top Trader interview wrote;
...market limit up, limit up10 days in a row, they were giving you an edge...to trend follow.... [Accurate Paraphrase, not quote]

Not saying markets usually go limit up 10 days in a row;
especially SPY, DIA, QQQ, SLV, GLD.Word to the wise. A young age, can be helpful, simply may have more time to make up losses...................

Keep records;
daytrading losses -years,
and long term trades profitable-years , short term investing profitable-years & decades .

 

[Visaria]

Quote from 1a2b3cppp:

- having a huge account size so that you can keep averaging down into your position no matter how far it goes against you and eventually exit for a profit. In this case, your account size is your edge

Intradaybill says I don't know what I'm talking about because i disagree that this is an edge.

Has me on ignore.

Think about what this tells you about intradaybill.

 

[bone]

Quote from Free Thinker:

do i have enough money to survive the learning curve.

This is brilliant commentary. Better yet, does the trader have a strategy that will survive live trade drawdowns several times in a row in terms of capitalization. Bravo, FT.

 

[1a2b3cppp]

Quote from Visaria:

Intradaybill says I don't know what I'm talking about because i disagree that this is an edge.

Has me on ignore.

Think about what this tells you about intradaybill.

It is a phenomal edge.

Intradaybill is correct for agreeing with me.

 

[Dustin]

OP it sounds like your prop shop is throwing you to the wolves. You don't have the slightest idea yet what it takes to be a consistently profitable trader but you are trading live with what little stake you have. Really bad idea. At least you are asking the right questions but protecting your capital should be priority #1.