if the sample size is large enough.... yes. and that goes with everything else in life... you go on the road knowing that there is always a risk to get hit by a truck.
Interesting. I hear this all the time from traders. My contention is even though good money management isnt an edge, it will keep you in the game long enough to take advantage of LUCK. Those huge winning days that are guaranteed to happen if you are in the game long enough. it isnt edge, but LUCK will arrive if you can stay in the game via money management. just a thought, surf
one needs to create the sample size by staying in the game long enough via money management for the "expectancy" to work out. not to mention the inevitable role of luck,,,,,,, otherwise its just academic rhetoric. surf
"I bet the best traders on ET do this..." http://elitetrader.com/vb/showthread.php?s=&threadid=167166 In the above thread, some of them have very different views:
surf, your statement contradicts the definition of negative expectancy. it's like saying that if you have enough discipline and capital to sit at the slot machine long enough, you will hit the jackpot. The definition of negative expectancy, or lack of edge, determines that the chances are you will run out of coins before hit the jackpot. people still hit jackpots, but odds are against that. So the discussion needs to be on statistical terms, not anecdotal ones.
And a good thought it is! I've been trading a long time. I don't have an edge now, nor do I expect to find one. (Years ago I had one, but the SEC determined it was too good and made a regulation against it... bummer.) Discipline is the key.... not making poor decisions due to "hope".
no, its more like sitting at the roullette table with only a black and red bet with no zeros. however, this roullette table can offer way more than double your money on each bet, but you can only lose the amount you put up from your stash. the slot machine analogy doesnt work when compared to the market. best, surf
answering the OP question; traders keep trading because an EDGE is not needed to make money in the market. A funded account is the only thing needed. I know this for a fact, from experience. a positive expectancy on a moving target does not gaurantee anything. If the edge doesn't last you will never have a big enough sample size.