Three Sources of Edge

[Redneck]

The only genuine edges I know of are both illegal....

1. Front-running

2. Trading on insider info

Lots of people perceive other as "edge", but likely is not.

JMV, FWIW....

Having the capital to affect price of the instrument one is trading

Knowing order flow (a tried and true pit trader's edge..., lost..., once the pits dried up)

Ability to be outright long..., and short - the same instrument

Ability to see resting orders


Control the mechanics - control the game


None illegal

RN

 

[Scataphagos]

Having the capital to affect price of the instrument one is trading

Knowing order flow (a tried and true pit trader's edge..., lost..., once the pits dried up)

Ability to be outright long..., and short - the same instrument

Ability to see resting orders


Control the mechanics - control the game


None illegal

RN

None illegal, but none worth much either.... therefore not really an edge in my book.

Being able to buy insider stock before it comes public is often a big edge, but doesn't apply to many... especially traders like us.

 

[Chuck Krug]

this sounds like an edge: http://www.amsterdamtrader.com/2015/10/how-degiro-screws-clients.html

 

[NoBias]

1, Born into money

2, Marry into money

3, Get an education, select a profession you enjoy (if you love what you do, it is never work), sacrifice, dedication and perserverence...

Other than items #1 and #2 there are no shortcuts in life...

 

[Redneck]

Exploitable edges

Arrogance and ignorance - for all but the possessor

RN

 

[Redneck]

1. Jameson Irish Whiskey
2. Moscato Wine
3. Starbucks Coffee

What does this spell? Hell of a good time.

Drinkin to your health tonight H123

http://olesmoky.com/


Happy New Year All!!!!!

RN

 

[deaddog]

If you guys think psychology is an edge for you, then it's an edge.

That says it all. If you don’t believe that something is an edge it never will be for you.


If you include discipline as psychology then I believe it is an edge. Traders fail because they let their emotions get the better of them.


Just having a plan with specific criteria for entries, exits, and risk control is an edge. Having the discipline to follow that plan only adds to the edge.

 

[cjbuckley4]

That says it all. If you don’t believe that something is an edge it never will be for you.


If you include discipline as psychology then I believe it is an edge. Traders fail because they let their emotions get the better of them.


Just having a plan with specific criteria for entries, exits, and risk control is an edge. Having the discipline to follow that plan only adds to the edge.

If you think it's an edge in discretionary trading, then go for it. Much like Tom Brady defiantly made the choice to eschew any hopes of not being the slowest QB in NFL combine history when he showed up in camp counselor style cargo shorts, I too eschew whatever edge psychology may bring by choosing to focus on more objective facets of trading.

 

[deaddog]

If you think it's an edge in discretionary trading, then go for it.

I'm not sure what you mean by discretionary trading. As apposed to a rules based system? If that's the case we are in agreement; discipline isn't going to help.

 

[Cswim63]

Edge: buy something that's going up, sell something that's going down. If it doesn't, get out. If it does, get out when it stops or before. Am I missing something? Oh yeah, if you can't tell don't trade it. You have no edge