Three Sources of Edge

Discussion in 'Trading' started by Chuck Krug, Dec 28, 2015.

  1. Redneck

    Redneck


    Having the capital to affect price of the instrument one is trading

    Knowing order flow (a tried and true pit trader's edge..., lost..., once the pits dried up)

    Ability to be outright long..., and short - the same instrument

    Ability to see resting orders


    Control the mechanics - control the game


    None illegal

    RN
     
    Last edited: Dec 29, 2015
    #41     Dec 29, 2015
  2. None illegal, but none worth much either.... therefore not really an edge in my book.

    Being able to buy insider stock before it comes public is often a big edge, but doesn't apply to many... especially traders like us.
     
    #42     Dec 29, 2015
  3. NoBias

    NoBias

    1, Born into money

    2, Marry into money

    3, Get an education, select a profession you enjoy (if you love what you do, it is never work), sacrifice, dedication and perserverence...

    Other than items #1 and #2 there are no shortcuts in life...
     
    #44     Dec 30, 2015
    wrbtrader likes this.
  4. Redneck

    Redneck

    Exploitable edges

    Arrogance and ignorance - for all but the possessor

    RN
     
    #45     Dec 30, 2015
    SunTrader likes this.
  5. Redneck

    Redneck

    Drinkin to your health tonight H123

    http://olesmoky.com/


    Happy New Year All!!!!!

    RN
     
    #46     Dec 31, 2015
  6. deaddog

    deaddog

    That says it all. If you don’t believe that something is an edge it never will be for you.


    If you include discipline as psychology then I believe it is an edge. Traders fail because they let their emotions get the better of them.


    Just having a plan with specific criteria for entries, exits, and risk control is an edge. Having the discipline to follow that plan only adds to the edge.
     
    #47     Jan 2, 2016
  7. cjbuckley4

    cjbuckley4

    If you think it's an edge in discretionary trading, then go for it. Much like Tom Brady defiantly made the choice to eschew any hopes of not being the slowest QB in NFL combine history when he showed up in camp counselor style cargo shorts, I too eschew whatever edge psychology may bring by choosing to focus on more objective facets of trading.
     
    #48     Jan 2, 2016
  8. deaddog

    deaddog

    I'm not sure what you mean by discretionary trading. As apposed to a rules based system? If that's the case we are in agreement; discipline isn't going to help.
     
    #49     Jan 2, 2016
  9. Cswim63

    Cswim63

    Edge: buy something that's going up, sell something that's going down. If it doesn't, get out. If it does, get out when it stops or before. Am I missing something? Oh yeah, if you can't tell don't trade it. You have no edge
     
    #50     Jan 2, 2016