Is this the key to trading successfully ?

Discussion in 'Trading' started by zanek, Apr 15, 2010.

  1. zanek

    zanek

    Assuming someone has an statistical edge and some modicum of discipline (and I know thats assuming alot) would the experienced successful traders say the key to getting to the next level (making consistent money) is realizing that its really just a numbers game at that point of taking every trade no matter what since the system has a statistical edge ?
     
  2. A numbers game indeed.
     
  3. No
     
  4. In theory, I think you are right on the money. Most traders fail because they don't understand this and they trade on emotion with no real game plan. A supposed edge will fail to work in some kinds of markets though, it's impossible to find something with a nice smooth equity curve regardless of the year you're backtesting or the market you're trading. You'll find this thread interesting, I just posted something similar yesterday.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=196255
     

  5. Yes, basically, that is what successful trading boils down to. One word i would change is 'edge', you should change this to 'expectancy'.

    Experience will give you an expectancy of favoured outcome in any one situation.
     
  6. lindq

    lindq


    In general, yes. But I would change "modicum of discipline" to "extreme discipline".