Well, since you asked...I think having access to enough capital to engage in working strategies vs. stock picking or directional type guessing which way the market will go. This is a legitimate edge, I know it sure helped my brother and I when we first started. Don
No need for hostility, just pointing out "an" edge. Openings are certainly an edge, have been for decades, and you'll notice I said capital use helped my brother and I when we needed it, not just Bright Traders. I have a pretty good handle on what is working these days, with between 400-500 traders, pretty easy to see, LOL....I don't have to be so smart, just read the daily sheets. Sure there are directional traders making money, and who knows, maybe they would make more with additional capital. And, yes there are other Pro firms who offer capital usage. No arguments from me. All the best, Don
Let me get this straight...you have no experience daytrading and you are going to trade other peoples money?...it don't add up...I suggest trading your own cash until you are proven and profitable....become consumed with one contract...ES,YM, QQQQ etc.
you had wrote..."But the thing is, I donât have any real experience with the stock market, other than long-term investing (which is very different from day trading). "...again...daytrade on your own before trading with other peoples money...serious situation here!
If that's the definition of an edge, then I certainly don't have one. Neither do most market participants, I think. I assume the word "tool" in the above quote refers to a powerful computer program; "piece of information" probably refers to inside information; and "capability" seems to mean extraordinary skill, brought about either through a prestigious education or natural ability (which brings us back to my original questions). That leaves only "process," and something tells me that I'm not going to be handed the Holy Grail at a prop firm. So I assume the "process" that I will learn at the firm will not constitute an "edge" of any kind. Sounds pretty bleak.
As an objective listener, sounds like you really don't want to pursure this. Too many "I don't know about this or how to do that. And I'm not this way and can't do that" etc, etc. I think if you are passionate about something you go at it blindly at first without even considering the road blocks.
You really want an edge? Okay, the edge that will make you successful as a trader is the ability to control your emotions and act objectively when you execute your buys and sells. You have to stick to your trading plan even when your heart is racing, palms are sweaty and you're hyperventilating. You also have to be aggressive and be able to pull the trigger on trades and not second guess yourself. In other words, good traders exercise controlled aggressiveness and can master their emotions when they execute their trading plan. Remember, trading plans are a dime a dozen and most of them will work if you have the discipline to follow them. Even a monkey throwing darts at a stock list can beat most MBA'd money managers as long as it can cut its losses and let its profits run. Mental discipline. This is the edge that will make you successful. You don't need inside information or a PHD from Harvard. You don't need math skills above a sixth grade level. You just need to be disciplined and mentally strong. It's no secret that top trading firms like to recruit accomplished athletes or military types because of their discipline and competitive nature. These attributes are far more important to becoming a successful trader than academic aptitude. Most newbies like yourself will say "no problem, I can master my emotions!", but once they're thrown into the battlefield and start trading larger positions, they end up discombobulated and blubbering like a newborn babe when the position moves against them. Or if the position is moving in their favor, they immediately hit the sell button because they're petrified that the gain will turn into a loss and they fail to adhere to their profit objective. Greed and fear is what prevents most traders from breaking out and becoming successful. Impatience and recklessness are other poisonous attributes. The best traders are like elite Army snipers. Incredibly patient and can wait for days until the situation is ideal. Calm under pressure. Decisive when they need to act. They can make snap judgements on the fly. They are supremely confident of their abilities. Like a previous poster stated, find a prop firm that will let you practice with their own money and you'll be able to determine if trading is indeed for you.