What's Your Edge? (For Equity Traders)

"Tape reading was an important part of the game; so was beginning at the right time; so was sticking to your position. But my greatest discovery was that a man must study general conditions, to size them so as to be able to anticipate probabilities." Reminiscences of a Stock Operator

 

Capital Edge – Use of Firm’s Capital· Even the best strategy won't be profitable without adequate capital

Market Access Edge – True Market Access via Exchange membership or licensing ·

Timing Edge – Proper equipment to go straight to the exchange trading floor·

Information Edge – Other Traders & News ·

Education Edge – Continuing education is mandatory, the market will not stay put.·

Don

 

...I have recently been on the receiving end of a ration of shit which I think IS my wife posting!

 

the ability to adapt

 

agreed. Also, patience is key.
Practical example: wait for the set-up, but buy the move. Quite often it is easy to jump in at the first sign of a change of trend, then it quickly reverses on you.
While the set-up was in fact good, it is often prudent to wait for the actual move or follow though before entering.

 

Well, two things are for sure:
1. It's not me!
2. Now that you posted THAT, you are in big trouble

 

Several things come to mind for me:

1) Speed (from automation)
2) Consistency/Discipline (from automation)
3) Very low tranaction costs (due to high volume)
4) Diversification (due to trading 100+ stocks and futures , no huge risk in any single trade)

-Eric

 

I've been doing this and made some nice $$$$$ in 2004.