True Edge in Discipline and Money Manangement

Discussion in 'Professional Trading' started by lpchad, Mar 4, 2009.

  1. lpchad


    For all of this talk of having an "Edge" one could argue that if you execute proper money management, position sizing realtive to the size of your account, utilizing (or not utilizing) proper leverage to the size of your account and sticking to your setups that should give you enough of an edge over the average trader who does not practice these items.


  2. agree but it wont take anywhere anyway.

    your enemy is not the rest of the traders in the market but rather the commissions and slippage that you have to endure in order to execute your trades.

    thus, even if you are the most disciplined and efficient trader out there, you will only survive, if you are able to revert the negative sum equation. that can only be done using a positive expectancy trading system, which goes much beyond money management and discipline, even though these two aspects have to be present as well.
  3. MGJ


    Try it and see. If it works you've got your proof, and if it doesn't work you've got important new data to help refine your theory.
  4. lpchad


    I was assuming a system with positive expectancy, very good point you clarified.