Your thought process going into a trade

[Visaria]

Negative, Odds are the same irrespective of past spins. 100x Red spins in a row = the odds of Red/Black coming up next spin are unchanged.

LOL...100 reds in a row indicate a bent wheel.

 

[Buy1Sell2]

I agree. As I have posted before, part of risk management is proper trade allocation toward ideas that have positive expectancy with a risk/reward value that fits your business. I would say that I would rank EDGE then RISK MANAGEMENT as the two most important things to focus on, but I would not describe risk management as an edge, but a requirement to be successful.

FALSE. --Prudent Risk Management is the only true edge in trading.

 

[Buy1Sell2]

The fact that most folks don't believe this is not surprising, given the results that most come away with.

 

[KingOfClubz]

Yes this makes sense, I guess I am still at the stage of trying to fully understand what trading styles there are, THEN knowing which one to refine as my own.

 

[victorycountry]

Your thought process going into a trade -> need to know what drives the market quality, and they are the market liquidity and market volatility.

Rule1) Any system that did not take into account these two, will generate inconsistent results. And the risk management will complement your system - and the risk level will depend on you.

Rule 2) trade on the dominant trend, if you're not able to identify when the dominant trend begins, you will generate inconsistent results.

 

[bone]

Honestly, you need to commit the same energy and focus to your protocol for sitting with a trade (I.e. Trade management) as you do the conditions for entering a trade. It makes or breaks trading careers.

 

[SimpleMeLike]

Hi, I was hoping a more experienced trader could help me understand the thought process that went into a successful trade.

The thought process is where do I enter the trade, where will I exit the trade if I am losing money, and where will I exit the trade if I am making money.

A profitable or losing trade is consider successful if the trade is take per some set of rules, plan, or any reason before you take the trade. Even a loser trade is successful if you understand why you took the trade and comfortable with the risk.

 

[SimpleMeLike]

the real edge to trading is risk management

recession2016,

Risk management is not an edge, its just monitoring your money. Anyone can or will eventually learn this after enough losses or wins.

Edge in trading is what makes my trading system create less losses and more wins technically. Edge is what makes this trade I am about to take have high probability of winning then my competitors.

 

[humbletrader2016]

That was well said.

recession2016,

Risk management is not an edge, its just monitoring your money. Anyone can or will eventually learn this after enough losses or wins.

Edge in trading is what makes my trading system create less losses and more wins technically. Edge is what makes this trade I am about to take have high probability of winning then my competitors.

 

[bone]

recession2016,
Risk management is not an edge, its just monitoring your money. Anyone can or will eventually learn this after enough losses or wins.

From what I've seen over the years, I have to disagree with you on this point. You give too much credit to your fellow human beings.