Finding the edge is like finding a good women. I did better at trading. http://www.youtube.com/watch?v=RVX9RCPdOk8&feature=related New traders shop around for that perfect indicator. Rots of RUCK!!!! Notice in the video, the car is an EDSEL. Is your favorite indicator like the EDSEL to your account? ha Do not allow your edge do this to you http://www.youtube.com/watch?v=GizJz6BUBkI&feature=related Will your edge do this to you tomorrow http://www.youtube.com/watch?v=eBFpOlUlH2g&feature=related Ok, done having fun One more, saying goodbye to that indicator that screwed you http://www.youtube.com/watch?v=_WIfEDWEt94&feature=related
Ha, right Nod. We never outgrow out teen years now do we? I can relate life after teens back to those great years over and over regardless of the changes in 50 years because the GOOD things in life are everlasting. Every life experience we face is a part of our future even though we do not know that at the time.
I agree. "Plan your trade then trade your plan" and don't trade if you don't have an edge. If you do then trade it and be disciplined with your risk management and asset allocation. Stay consistant. You can be right 9/10 times but if you go BIG on the one that is wrong you can wipe out some or all of the gains from the 9 successful calls.
Read what Bolimomo amd others who responded earlier: So where is the discussion on the "Edge"? Are we just stating the obvious? I agree with TraderZones on the oversimplication. The 5 points are "all you need". Like playing tennis: "all you need" is to hit the ball and get it over the net, within bounds.
I understand, but do you really think I'm going to post the full edge on a public forum ? Posted the start of a legitimate edge, you can choose to ignore it or explore it.
The question is: What is an "edge". To me: an edge is an advantage you have (and that the majority doesn't), and you can exploit it and fully utilize it to beat your opponent (the market), more often times than not. Definitely not 50-50. Not even 60-40. Maybe 70-30, 80-20, 90-10 over some time period. In a tennis analogy again: Telling people to hit to ball over the net to the other side, and make sure the tennis ball doesn't go out of bound. That's not an edge. That's the basics of the game. Telling people to run to where the ball is going so to position yourself to hit back. That's better. but that's is still not an "edge". Because most successful players can do that. An edge that will lead you to win, as I see it: * You can power-serve lots of aces like Andy Roddick. That's an edge. * You can run cross-court like a maniac like Rafael Nadal. That's an edge. * You can fight back under extreme pressure at the face of losing like Serena Williams. That's an edge. * You can split your legs like Kim Clijsters to catch a ball. That's an edge.
Most geeks do not realize that more important than the edge itself is to know when it is about not to be an edge any longer. They get excited after a few winners and take big risks only to find out that when they thought the big kill was in their way, the big drawdown comes. An edge is important but it's like love, It can turn into hate if you do the wrong things, like take it for granted. Trade with an edge but take risks like you do not have one.