Finding an Edge

Discussion in 'Trading' started by Alfing, Aug 31, 2018.

  1. tomorton

    tomorton


    I seriously recommend reading as few books as possible on trading. I'd suggest one book on each of the following -
    chart patterns - Thomas Bulkowski / John Murphy
    candlestick patterns - Thomas Bulkowski / Steve Nison
    trading psychology - Mark Douglas
    example strategies - Linda Bradford Raschke / Mike Covel / Mark Fisher / Alan Farley

    Nothing on indicators, statistics, probability theory, advanced psychology, company accounting, how Warren Buffet got rich, very little by any college professor, nothing on the fundamentals of sovereign currencies or central bank procedures.
     
    #31     Sep 1, 2018
    cafeole and Alfing like this.
  2. comagnum

    comagnum

    Novices think an edge is found in entry signals. Seasoned/profitable traders know the edge lies in the sum parts of the traders psychology and trade/risk mgmt.
     
    #32     Sep 1, 2018
    tommcginnis, brucelevy and smallfil like this.
  3. treeman

    treeman

    Trader longer time frames.
     
    #33     Sep 1, 2018
    brucelevy likes this.
  4. IAlwaysWin

    IAlwaysWin

    I completely disagree with following the end of a trend. The trick is being able to catch the very beginning of a trend or learning to not be reliant on following the pack.
     
    #34     Sep 1, 2018
    Handle123 likes this.
  5. IAlwaysWin

    IAlwaysWin

    When big players are moving money around you'll see jumps in price with little volume
     
    #35     Sep 1, 2018
  6. dozu888

    dozu888

    there is not 'an edge', but there is 'the edge', which is the trader himself.

    'an edge' can erode. 'the edge' means you read market well as a discretionary, or you program well as a systematic.

    see my 'trading is easy' thread, an example of how you get an edge.
     
    #36     Sep 1, 2018
  7. dozu888

    dozu888

    trend-following is a pattern, it's NOT an edge.

    check CTA performance in recent years.. no edge there anymore.... that's what I meant by 'an edge will erode'.
     
    #37     Sep 1, 2018
  8. treeman

    treeman

    I'd contend that your buy and hold the NAZ is trend following.
     
    #38     Sep 1, 2018
  9. EsKiller

    EsKiller

    When this question is asked, its normally when a novice trader has a little bit of knowledge, nut not enough to know how to create a workable strategy.

    As someone that's traded successfully for years, the most beneficial thing you can do is to stop looking for edge. Instead, pick an instrument you are interested in trading and study how price moves within the instrument for 2 hours a day for at least a year. Break down the bars bar by bar as each tells a story. Use logical reasoning to determine why these bars form the way they do. Why is important. Once you understand how each bar reacts and why in different areas of a chart, you have enough information to begin to create edge.
     
    #39     Sep 1, 2018
    cafeole, TraderEX, Alfing and 2 others like this.
  10. Edge... is basically whether or not you have mastered the art of reading price action on a chart to day trade futures/stocks/currencies; or mastered analyzing volatility to trade derivatives.

    It is not some secret sauce, it is just hard work, effort and vision.
     
    #40     Sep 1, 2018
    speedo, soulfire and EsKiller like this.