S/R Emini Journal

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Well I believe we are all pretty much on the same page with the "edge" thing. I would rather just call them the intangibles or attributes more than the edge. An edge, to me anyway sounds like you have soem cheat sheet or holy grail indicator. It isn't like that. A trader develops a certain set of attributes that help set them apart from others. I think we all have them or can develop them if we just learn how.

Thanks to all who joined in this discussion. FT71, I don't know much about you but I think I like your style. Please feel free to join in. Sosa, the same goes for you. It has been nice talking to both of you.

Romik, I am going to have more time tomorrow. I will talk a little more in depth to you about stock options in your journal. Thanks, as always.
 
Quote from 4re:

Well I believe we are all pretty much on the same page with the "edge" thing. I would rather just call them the intangibles or attributes more than the edge. An edge, to me anyway sounds like you have soem cheat sheet or holy grail indicator. It isn't like that.
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Thanks, 4re, for this discussion of EDGE. I have been thinking about this concept a lot, and it is nice to see it addressed here. SOme visitors to my thread said I have no edge, other said I do, and still others said I am my edge. I agree with you, 4re. The concept is a very complex and "intangible" one. I believe the traditional "strategies" using technical indicators such as stochastic or MACD, moving average cross-overs, S/R levels etc. etc. are NOT really an EDGE, since many traders (if not all) use them. I define an edge as something that is unique to one (or a few), usually a "proprietary measure" developed by a lot of hard work and long period of data. That is why I said in my thread that only a hedge fund with lots of money might have an edge, and that I DO NOT HAVE an edge.
I would like to see what you ALL think is an edge and why...
 
Quote from goodday:

I define an edge as something that is unique to one (or a few), usually a "proprietary measure" developed by a lot of hard work and long period of data.
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Amen brother. :)

That is why I said in my thread that only a hedge fund with lots of money might have an edge, and that I DO NOT HAVE an edge.
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Come again? :confused: That's uh, not true, not true at all. Any guy/girl who wants to put in the time and effort and creativity can not easily develop their own edge.

Later,

JJ
 
"An edge is nothing more than an indication of a higher probability of one thing happening over another."

- Mark Douglas

Well let me see....if the markets long term direction is up and the morning session has been in a down trend, volume is drying up, stochastics are oversold and suddenly volume perks up to create a hammer with a long downward shadow.

This might be a setup someone uses to buy because the probability is that the market is about to go up again.

Maybe that's all an edge is.
 
Quote from riaamaan:

Well let me see....if the markets long term direction is up and the morning session has been in a down trend, volume is drying up, stochastics are oversold and suddenly volume perks up to create a hammer with a long downward shadow.
This might be a setup someone uses to buy because the probability is that the market is about to go up again.
Maybe that's all an edge is. [/B]
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Maybe so. But if it is, many (if not all) serious traders have this insight. What makes one successful in this trade and not another? Will every one with this "edge" make money? And, if it can make money for everyone, why is this an "edge"??

Just some things to think about.... on the road to creating an EDGE...
 
Quote from goodday:

Maybe so. But if it is, many (if not all) serious traders have this insight ...
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Well then, according to this definition:
"A margin of superiority; an advantage: a slight edge over the opposition", that ain't no edge.

Here's my shot at tomorrow's S/R numbers.

Ciao
 

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Quote from goodday:

... What makes one successful in this trade and not another?
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Discipline and consistency perhaps?

Will every one with this "edge" make money?
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No....see above. It's difficult to be hyper vigilant and catch every opportunity. Even if you do catch every opportunity, some setups invariably fail.
But if it succeeds 6 times out of 10, you should, on balance, come out profitable.

And, if it can make money for everyone, why is this an "edge"??
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Does it matter? If it makes money for you, then count your blessings...This is a tough business.
 
When it comes to the "edge" thing I guess you could say I agree with everyone and I disagree with everyone at the same time. I think someone just to try give a label to a successful trader just said "hey, he has an edge". I do think you can give the same method to 100 different and about 5 will get rich. Another 10 will do ok. And the rest will range between poor and awful. I would say it has to be something in their personality or something. But since we can't leave well enough alone these days we define the good ones as having an edge.

I don't consider myself as having an edge I just like to think that I put myself in position to jump in with the big guys and ride their wave. Only I do it on my terms. If people want to define that as an edge or luck or whatever that is ok with me. As long as my account goes up they can call BS for all I care.

I do enjoy this kind of discussion on the weekend though because it makes everyone think.

Gary
 
This method has been around for awhile with a number of variations and has held up pretty well. Flags still work. There are a number of classic methods that work. Why do some make money with them and others do not? The only answer I can come up with is that some have the will power to follow the plan and others (the majority) do not.
 
Quote from Bearbelly:

This method has been around for awhile with a number of variations and has held up pretty well. Flags still work. There are a number of classic methods that work. Why do some make money with them and others do not? The only answer I can come up with is that some have the will power to follow the plan and others (the majority) do not.
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Could have said it better...Just that some people won't accept that and have to label it as an edge. And you are right I didn't reinvent the wheel here. I just put a buggy on it and I will ride around on it for a while :D
 
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