Psychology of Edge in trading Any good statistician can coin a reasonable edge after studying the trading charts. A statistician's edge may be nothing more than a probability. A trader may "see" an edge which a statistician will generally miss to see. It must be more than just probability. One such edge is momentum, a physics in the trading chart. Momentum is rate of price action OR timely price action OR price action against time. Statisticians wont see this physics on the trading chart. Momentum is an obvious psychology on the trader's chart. The power of momentum is such that it makes possible to tighten the stoploss without being hit often, which ultimately increases both the success rate of the strategy and profits as well. Feel free to review this case study of momentum trading strategy with a virtual stoploss : https://www.elitetrader.com/et/threads/principle-based-day-trading-strategies.304974 Note : All the technical charts (eg. moving averages) are heavily based on statistical theories and nothing much about trading psychology, which makes them less effective trading methodology.
Psychology : How to overcome fear and greed while trading https://www.elitetrader.com/et/thre...s-not-so-obvious.151802/page-571#post-4403211
Psychology of probability based trading strategy https://www.elitetrader.com/et/thre...s-not-so-obvious.151802/page-569#post-4402335
For beginners ... https://www.elitetrader.com/et/thre...enough-to-live-on.306459/page-11#post-4403875
Why probably more than 90% of traders fail ? https://www.elitetrader.com/et/thre...nds-through-volume.306591/page-2#post-4404813
How many years needed to learn day trading? https://www.elitetrader.com/et/threads/poll-how-many-years-needed-to-learn-day-trading.306659/
Psychology of skill and transformation in personality https://www.elitetrader.com/et/thre...-learn-day-trading.306659/page-2#post-4405219
Psychology of profession https://www.elitetrader.com/et/threads/you-have-to-die-before-becoming-a-successful-trader.306714/