Trade with an edge! Trade with an edge! So what's an edge supposed to be? Inside information? A fool-proof system? What can I possibly have that other traders don't or can't have? Some examples would be appreciated. Thanks.
This may have been covered before http://www.elitetrader.com/vb/showthread.php?s=&threadid=35331 http://www.elitetrader.com/vb/showthread.php?s=&threadid=42807
The Edge? It's not something that you alone would have e.g. the Holy Grail. It's simply something that most traders do not have, because they mostly lack patience or confidence to reach it. The edge is more about psychological and mental strength, consistency and strategy rather than some undiscovered secrets or miracles or UFOs or such. In my view, it's actually nothing more than: methodology+discipline+experience+tools prefix all those words with "decent trading", if you like. Most traders cannot achieve or simply believe in their edge even if they come close to it - the reason may be lack of patience, confidence or whatever. So the edge is simply the level of understanding the markets and knowing how to benefit from it. This is reached through solid experience only, be it good or bad. It's how you can handle the bad times, that will eventually either bring you the edge or then not. I mean, you might also think of the edge as really fast and accurate market data stream or really good insider information, but without training, experience and discipline you're still doomed. The edge is to be found within. Good trading.
Knowing enough about trading to rise above that huge pool of losers, i.e. stop paying for the winnings of others.
I think many have mis interpreted the "Edge" as referenced in Market Wizards. I believe it is simply a statistical percentage advantage based on ones trading style or methodology. Over time the edge one has will be clear. The more one trades in a disciplined and replicated methodology, the moe evident the amount of the"edge will be clear" This is not dis similar to the "edge" the casinos have in Vegas, they know that for every dollar wagered on certain games, over a period of time they will have a certain % return that actually is a very stable number, it is the short term variations from the mean that causes confusion and doubt.
Yes. One could say that a winner has an edge and that a loser has no edge. In fact "edge" sounds only magical to losers. Winners, IMHO, wouldn't give a damn about finding a name for it.