Skill Vs. Edge

[Daxtrader]

Someone who makes a living trading off of charts, S/R levels, good money management, does this person have an edge? Don't most people use charts to trade?

Can someone give a specific example of an edge?

For those traders that trade off of chart patterns with good money management skills, are they fooling themselves?

What about buying pullbacks in a trend with tight stops, is that an edge? How about being able to recognize that something is trending, is that an edge?

I don't really have an opinion. Just trying to understand the difference.

 

[marketsurfer]

Quote from Purple Barney:

This skill helps him exploit other TRADER's inefficencies, traders with less skill, this is why I said SUPERIOR skill. Since this does not deal with market inefficiency, does it still constitute as "edge"?

this all sounds well and good in theory.

however, your inherent inefficency is what will be your undoing, given enough time without an evolving edge(s)--

and by the way, edges are constantly changing/evolving/becoming extinct. many lose it all, or give up when their edge vanishes, as another is often simply too expensive/time consuming to develop.

best wishes,

surf

 

[rosy2]

the profitable "edges" are usually just taking advantage of the current system and exploiting it fully. maybe the skill used is more creative cleverness than anything else.

just like a tax attorney finding loopholes; same thing.

 

[ozzietrader]

Quote from steve46:

So he doesn't NEED you....

Then why the offer?

Because this asshole is a con artist trying to game folks..

Hey asshole, I have 10k, pm me and I will show you how to fold it and "insert" it where it will do the most good.

Haha exactly, why the offer. Have the mods just not seen this guy trolling all over the forum? I'm used to people being banned quickly if they break the rules.

 

[Spectre2007]

-doing what most others find hard to do.

 

[Lights]

I think this entire thread shows how the vast majority of traders were never actually "trading" but basically sticking the subway token into the toll booth.

Quote from risktaker:

Many newbies also take for granted the fact that many "edges" are exploited by a professional who knows and can see them when they appear whereas newbies just trade the hell out of their account until nothing is left and then blame the market.

A professional knows if his edge/edges are working or not. If not, he usually keeps reducing size down to practically 0 in order to stay in the game and participate again with size when his edge returns and conditions change.

There's a lot more to profitable trading than chart reading/money management.

 

[marketsurfer]

Quote from Lights:

I think this entire thread shows how the vast majority of traders were never actually "trading" but basically sticking the subway token into the toll booth.

more like the slot machine.

regards, surf

 

[MrPaul]

Quote from Daxtrader:

Someone who makes a living trading off of charts, S/R levels, good money management, does this person have an edge? Don't most people use charts to trade?

Can someone give a specific example of an edge?

For those traders that trade off of chart patterns with good money management skills, are they fooling themselves?

What about buying pullbacks in a trend with tight stops, is that an edge? How about being able to recognize that something is trending, is that an edge?

I don't really have an opinion. Just trying to understand the difference.

I'm in the same camp as you on this.

If for instance someone trades off Price and volume, simply identifies wholesale accumulation or distribution and trades the path of least resistance over years and years profitably, is it an edge or a skill?

 

[Lights]

this assumption is invalid because it assumes that everyone's skill levell is equal. it isn't. the market is not a simple meeting of clones.

Quote from marketsurfer:

seriously, those "skills" you list are the same skill set as any trader who even just survives awhile. surviving traders are all experts in those skills. without an edge, those skills are worthless.

you are trading against super computers with all the above programed with no emotion, practically unlimited capital ( compared to you ), less vig, more speed,better and more information, You think you can beat this?? be my guest....

you need an edge, not skill.

regards,
surf

 

[marketsurfer]

Quote from Lights:

this assumption is invalid because it assumes that everyone's skill levell is equal. it isn't. the market is not a simple meeting of clones.

i agree and disagree. allow me to explain......

everyone's skill level is not equal, i agree---this is irrelevant, however, since the inherent ineffiency of trading without a real edge will destroy even the most skillful given enough time ( the rare outliers don't count)

the market is predator prey relationships with the prey being a meeting of the clones as you say. there are very, very few edges and the prey(clones) is everyone without an edge. reality is, its actually worse than a simple predator prey relationship since the vig is constantly digging into the prey ( clones) win or lose.

surf