What defines an "Edge".

Discussion in 'Trading' started by redbaron1981, Mar 29, 2015.

  1. Buy1Sell2

    Buy1Sell2

    Prudent Risk Management is the only true edge in trading.
     
    #121     Nov 29, 2016
  2. algofy

    algofy

    Still need a winning entry and exit strategy.
     
    #122     Nov 29, 2016
  3. Buy1Sell2

    Buy1Sell2

    If you mean knowing exactly where to enter and exit, then no you do not need that.
     
    #123     Nov 29, 2016
  4. Buy1Sell2

    Buy1Sell2

    What you do need though is an ability to cut losses short and let winners run to maturity. --And this has to be related to your account size and TLNW. Most folks can't implement PRM. Those that do are the winners. PRM is the edge.
     
    #124     Nov 29, 2016
  5. Humpy

    Humpy

    Back in the day in the saloon the gunfighter's edge was his ability to shoot straight as well as fast. One is no good without the other.
     
    #125     Nov 29, 2016
  6. Buy1Sell2

    Buy1Sell2

    This analogy has nothing to do, and no correlation with, the subject at hand. (Anyway, it would seem to me that a gunfighter exercising extreme caution and not risking his life in the first place would be the big winner.)
     
    #126     Nov 29, 2016
  7. algofy

    algofy

    So do you enter at random?
     
    #127     Nov 29, 2016
  8. trdes

    trdes

    well before we can define edge, logic dictates we must understand what defines define?
     
    #128     Nov 29, 2016
  9. This is highly subjective from person to person...depending on what they trade, and their strategy and risk tolerances, etc etc.

    Most people would be happy to earn anything above .001% -- to simply have no losses :confused:o_O
    I don't want to say what are my healthy returns...because this is not about me, and besides...it would most likely drum up ridicule and skepticism.
     
    #129     Nov 29, 2016
  10. vanzandt

    vanzandt

    And we're glowing like the metal on the edge of a knife
    Glowing like the metal on the edge of a knife
    C'mon! Hold on tight!
    C'mon! Hold on tight!
    Thought it's cold and lonely in the deep dark night
    I can see paradise by the dashboard light
    -meatloaf

    Correction coming.
     
    #130     Nov 29, 2016