One day I decided to reverse my "buy" and "sell" buttons
What do you do to get your edge?
- Thread starter SoyUnGanador
- Start date
One day I decided to reverse my "buy" and "sell" buttons
My edge...
Pay $4k for a yearly subscription to Ragingbull.com and learn from a mensa verified trading guru how NOT TO TRADE.
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Alright, kidding there. One thing that worked well for me (but seems to be running out of steam as of late):
Follow closely what the DUMB-MONEY is doing.
Any security which millennials are jacking up on Robinhood (all the stupid SPACs, over-priced IPOs, and even the bankrupted companies they are STILL dogpiling in).
Lay your shorts. And just wait it out...
Unfortunately, the young & dumb money seems to be decreasing as of late. But there's still some left of the gravy-train.
If you run out of ideas, watch what's trending on TikTok.
Pay $4k for a yearly subscription to Ragingbull.com and learn from a mensa verified trading guru how NOT TO TRADE.
---
Alright, kidding there. One thing that worked well for me (but seems to be running out of steam as of late):
Follow closely what the DUMB-MONEY is doing.
Any security which millennials are jacking up on Robinhood (all the stupid SPACs, over-priced IPOs, and even the bankrupted companies they are STILL dogpiling in).
Lay your shorts. And just wait it out...
Unfortunately, the young & dumb money seems to be decreasing as of late. But there's still some left of the gravy-train.
If you run out of ideas, watch what's trending on TikTok.
Three and a half years of my life, that's where it is.
"Next best thing to a dyslexic broker."
Can you make money with a random coinflip entry? Yes!
https://tradeciety.com/can-you-make-money-with-a-random-coinflip-entry-yes/
Could you be a little more specific as to what you think an edge is? Spare no details.
You don't generate an edge. It is either there or it isn't. How you take advantage of an edge is what separates the good traders from the mediocre.
Stress levels higher for longer term (more relaxing) trades would be due to lack of conviction.
I and many others hold for months or years.
It's only because of conviction that the positions need time to work out.
Conviction is the belief in your trading methods, system and positions and that the market is running in your preferred direction, a rising tide lifts all boats scenario.
Some strategy, technique, advantage, etc. that allows you to beat the market over a long period other than through mere chance?
Find a niche, become an expert in it.
The market makes music everyday with many different types of instruments.
Find an area that resonates with you by exploring your curiosity. Once you’ve narrowed the field; focus - so that you can increase your “spectrum of differentiation”.
As you fail, fail forward.
Journaling is great but for me when I started to log bar-by-bar that was when “AHA’s” started to cascade.
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I agree with that. Another big factor would be capitalization. There are guys who are rich enough that trading a large account is similar to trading a demo account. On the other side of the spectrum you have guys who barely managed to put together $3K for trading and where even a small loss stings.
Another factor is leverage. If you're trading non-leveraged positions with long term holds you don't lose sleep over normal turns in the market cycle.
Usually, most guys who enter trading are not rich to begin with, so they typically fund small accounts and trade with high leverage in order to have a chance to make it. Or so they think. And the inevitable result is usually blowing up.
I was perhaps a bit too harsh with myself earlier in this thread. I do believe I have a small edge, but the margin of error is still fairly high. Meaning I'll have to execute fairly well and be able to stay out when things are not clear in order to get ahead.
The one thing people can't escape regardless of method is expectancy/profit factor. The larger it is - the better.
If you make sure that the risk/reward on your trades is at least 2 or preferrably higher, you can still make good money with a fairly low win rate. However, that requires that you do take your stops AND that you do take your full winners.
Most people take their full losses (or more) and cut their winners short. So, in the end they're really trading a 1:1 R/R system or even an inferior R/R risking 3 to get 1. And since their win ratio is far less than 80 %, they simply lose.