Maybe it isn't the methods that provide the edge. Maybe it is the trader. Maybe the edge is provided by the trader in that he knows how and when to apply the difference tools he has. Anyone can go out and buy a brand new set of Titleist golf clubs. A very fine set, most would agree. Put those tools in my hands and I'm still gonna shoot mid-80's because I am a hack and I don't practice. But give those very same tools to Ernie Els, and he will go out and shoot scratch or better. The tools are the same for both golfers, it is the golfer who provides the edge. Too much is made about having an edge and finding an edge. The trader makes the difference.
Updates below. Aim: Profits. Input: Capital, Risks, Man-hours, Knowledge, Stress, Will-power, etc. Means: Trading System (Method, Human, Machine, etc.). Process: Interactiing System (Trading System, Market, Whether, etc.) Measurement: As said before. Others: ...
nononsense, Listed in my first post are parts of different methods that I trade however they are the most discretionary parts. In all the methods that I trade a do use strict money and risk management such as: at least a 1:2 risk/reward, usually try for 1:3. never risk more than 5% of my capital on any one trade. ( This is more risky than most however I have limited capital). I use tight stops, so that when I know that when I am wrong I get out early. Regards, Tanp21
I've tried it but have never been successful with it. The scalpers claim that they can do as well or better than trend-traders, but since nobody has ever posted a system, I have no way of determining whether that is true or not. Theoretically, though, a scalping system can provide an edge. As I've said elsewhere, tho, it only begins with the system. If one can't be disciplined in following the system, if he can't execute it flawlessly, if he can't be consistent in his trades, and if he can't be objective about his performance, then the system in and of itself is immaterial. In other words, the system can't save him because he isn't following it. However, discipline or management or whatever alone isn't going to do it. You have to have a profitable system to work with. A losing system is a losing system, regardless of how closely you follow it.
...I use tight stops, so that when I know that when I am wrong I get out early... stops tend to be filled. IMHO tight stops are BS, although everybody is suggesting to do so. By using tight stops IMHO you will bleed to death, but yes, slowly.
Depends on the system and the entry, though many posters here will say that entries are irrelevant. Using tight stops with a bad entry is pretty much the same as giving it away. Easier and quicker to just set fire to your money and go read a book.
Quantitative-wise, I wouldn't think a scalping method in general would be possible to generate better profit volumn than some good trend-trading methods, according to the charts/results/messages so far I read from the Internet about scalping. In principle, why the trend-traders would make better profits than scalpers is simply because of the factor of how long (how much) time staying in the whole trend, I would guess. Personally my logic is if a scalper stays in a trend as long (or longer) as a trend-trader, (s)he wouldn't be a real scapler anymore.
I tend to agree with you. But the scalpers insist that they can do as well or better than the trend-traders, and those arguments are never very productive, so I just thought I'd toss it into the pot without taking the part of advocate. A trend-trader has to be pretty damn patient, though. This is the third day I haven't had a decent setup. Ain't August wunnerful?
Well, if the scalper can net 1/2 point per day for 20 days (~ 1 trading month) and the trend trader hangs in and picks up 10 points in the same time frame following a trend... they both end the month the same. The difference is the work involved. The scalper looking for a 10 cent hit, and many look for nickles, has to make 6-7 round trip trades, all right... to cover costs and net 1/2. The trend trader can make as little as 1 rt..... and have time to enjoy with his family or whatever.