I would say the biggest struggle I have at this point, is the confidence in the edge's I have designed and created. (I mostly trade directional stocks and commodities through options and the underlying security. I trade some spreads on the SPX, but my real alpha is through directional positions in things that move, those are the edges I have issues with). What I struggle with is confidence in my edges, and patience with them. I've spent about 7k hours building edges, and like them very much. Just having a little bit of trouble executing them. Anyone have any advice, sure this is a common issue out there.
Fact is..., most edges are overrated - they end up evaporating as the mkt evolves - then need to be retooled..., recreated A fruitless and wast of effort at best ===================== The one real edge you're lacking is confidence in yourself It the confidence to always act in your own best interest.., no matter what And that edge does not come from any mkt / price based content So..., how best to go about building you (internally) Any thoughts on the matter Sir ====================== And yeah..., it very common - ego / self doubt is a bitch RN
Edge changes as years go by and account rises. What you once thought it was a system, then time management then risk management then automation, so my edge is now moving onto doing other things in my life. Baby, am so happy everything is automated. You on right path for futures and hedging, I have done very well doing it this way, but I have never found trend original entry my thing, I have always gone against the crowd trading commodities, I learned to lose often LOL and how to live with it. But always keep working is key, you eventually add on to original direction(but others are thinking trend on dailies has changed) and learn how to hedge Open Profits. I don't know if I have spent that many hours on my long term commodity system as I have spent much more on day trading, but I have made the most on long term commodities. Some trades been as long as little over 5 years, lots of rollovers. But you going right direction, you want to be as close to zero risk as you can on first entering which has greatest chance of failing.
Maybe, just maybe, your Edge or skill in trading is shit. -- I don't want to sound rude and crude, I'm just sayin. Confidence generally comes from Experience -- so just hang in there, you'll feel confident eventually...if you don't blowup your acct. I would say it's a somewhat common problem or issue -- even the best of traders...constantly second guess themselves, and question themselves. ...but that's actually a healthy or positive trait, I would say.
Issues involving trading psychology is becoming more popular these days. Unfortunately, many think its vooodo or openly state they don't believe in it. Its going to be tough to get help on confidence, patience issues involving the psychology. Have you read any books on this issue and I'm not just talking about "trading" ? Thus, I'm sure you can find some good info on Amazon about how "confidence" and "patience" can be developed and then transferred into your trading.
Rn, Are you sure edges come and go? I pretty much see the same thing happening month after month with the market.. Maybe our definition on having an edge could be different.. I believe if you combined "context" with a good "strategy" then you can be a good trader..
How do you know you have an edge? How would you define it? I'm not asking what your edge is, just your process. For me, you have to create consistent profits that are risk adjusted. This can't be done in paper trading, only with real risk and real trades. You also need to do this under many market conditions or define what conditions you will enter and exit this strategy.
How about this.. Since you believe in your system... Trade with low leverage for two weeks straight.. And if you are profitable for those two weeks, then your confidence will go grow automatically 100% guaranteed.. Then week 3, increase your size little by little and so on.