Posted by WDGann, "OK, I'm done with what was pre-occupying me. Yes, I'm a native tongue(correct spelling ). The topic in detailed form would be. Because we tend to separate the psychological aspects and the technical aspects. It would be nice to discuss about the relationship between the two and how the 2 aspects reflect onto each other. For example: There are a lot traders in here who may have the knowledge but do not have the niche to make it to an edge. This is a conflict of psychology and technicals. What do you think? Another one, there are traders who have an edge but can't trade it. What do you think?" Here is the issue as I see it. You need 3 things to trade profitably. 1. money (proper capitalization for your trading style) 2. knowledge (fundamentally proper psychological behavior) 3. experience (a method of avg. profitable buying and selling) Think of it like fire, you need Oxygen, fuel, and heat to make a fire. You need money, knowledge, and experience to trade profitably. #1 money. You need it to trade. Enough said. The amount YOU need is dependent on your own situation...(ex. if you want to trade long term positions with 5k and not use any margin...it would be safe to say you are Under-capitalized.) #2 Knowledge. This is your trading psychology. A part of knowledge is understanding risk and money management (position sizing). You will not be profitable without risk and money management that is in line with your strategy and capitalization. #3 Experience. Forms your strategy or system. It is the approach you take to the market day to day. Buying on breakouts or shorting on breakouts...whatever you find works for you. When we talk about having an edge, it does not solely mean a technical edge (indicators or whatever)....Quite the contrary, one's true edge lies in his Knowledge (psychology). If a two different people can be profitable trading the same size and time frame using two different systems...it is clearly not the system that is the final arbiter of success. In other words it is not the system that the two traders have in common...it is their psychology. (NOTE: i am not equating risk and money management with the system specifically ...R&M management are both a part of your overall system, but they are born of proper trading psychology rather than your system. If my system told you to risk 10% equity on every trade and it would have a positive expectancy...I still would not trade it because it would be beyond my personal risk tolerances...which comes from my psychological makeup.) You need practical experience and years of it to understand how the market flows and to adapt to it. But you also need the unchanging rules of risk and money management. Now which is most important? money, knowledge, or experience? The answer is the one you are most deficient in is the most important to YOU. Right now I am most deficient in the experience department. Meaning I do not have a way to consistently anticipate stock movement. This will come in time and may take some years.