The EDGE of a trader - Page 4
Page 4 of 159 FirstFirst 123456781454104 ... LastLast
Results 31 to 40 of 1584

Thread: The EDGE of a trader

  1. #1
    Educator
    Join Date
    Jun 2013
    Posts
    1,105
    Promo (¢)
    15
    Thumbs Up
    Received: 579
    Given: 191

    The EDGE of a trader

    Hi traders! Many traders want to pick a profitable strategy, but not too many traders ask a question - "does this strategy have an EDGE?". Ability to earn money in a short-term time perspective is not an edge itself, it's just a correspondence of your strategy and current market conditions.

    The best way to understand the concept of EDGE it is to remember how casinos make their profit. They generate significant deal flow from their clients - they force them to make more and more bets and eventually, casino earns money and its edge can be explained in a few words: limited payoff per stake and limited stake size. That's it. That's the edge. All they have is to generate enough turnover to realize that edge.

    Edge can be formulated in a very simple way - for example, it can be ability of the market to liquidate quickly when it has exceeding inventory, or it can be ability of the trend to keep going in the dominant direction rather than reverse. It should be very simple, it's not a strategy, it's a core principle that allows you to beat the average. All you have to do is to have more situations that provide you your edge - in other words, more markets and more setups that have those profitable (for your trading style) inefficencies.

    Why do you need decent turnover to realize your edge? What about "trade less to earn more" principle? Well, the fact is that overall predictibility of the market is relatively low, and even if you have "A"-class conditions for your trade, you have no guarantees of profitable outcome. The very next trade doesn't make sence in terms of final outcome. Next 100 or 1000 trades will definitely make sence.
    So, there are core principles that should be respected by trader:

    1. Trading is a marathon and final result can be calulated only on a series of trades.
    2. Edge or your core trading idea should be simple. You should have opportunity to find it on any market. The best trading edge is that relies on fundamental unchanged behavior of market participants (say, trendiness).
    3. To realize your edge, you want to have more what works. More markets and more good setups.

    For example, I formulate my edge in the following words:
    I use ability of the strong trend to have better odds of continuation, and trade against couter-trend short-term inventory. It means that in my trading first I have to define a trend, then to define exact entry point - for entry I tend to seek for exceeding inventory of counter-trend traders. Trend creates market conditions that will help price action to go further, entry point will provide me good timing for my trade and will help me to reduce risk.
    So, you see that trend plays sigificant part in my trading, that's why I want to have more currency pairs (and other instruments as CFDs) for better trade selection. Also, I like to trade liquid markets (mostly currencies), because overbought and oversold conditions occur pretty frequently on these markets. Combining trendiness with short-term market logic helps me to move forward in my trading.

    How would you formulate YOUR edge?

    Not allowed!
    Last edited by Value trader; 03-26-2014 at 07:40 PM.

  2. #31
    Registered user Sascha's Avatar
    Join Date
    Dec 2013
    Location
    Racoon City
    Posts
    3,531
    Promo (¢)
    675
    Thumbs Up
    Received: 64
    Given: 55
    Quote Originally Posted by amjad23510 View Post
    very good information you have provided.there are many strategies available but we should try our best to get best results from a strategy.firstly work in demo account with any new strategy and then apply it in the real account.it is best way to get a estimate that the strategy is working or not.
    since there are many trading strategies we can find in many sources, we should choose one or two for ourself. we can't just trade blindly without any strategies or trade with a lot of strategies at once, unless you're that genius. i personally trade with one trading system and manual method, no need to use indicator and naked chart only.

    Not allowed!

  3. #32
    Registered user
    Join Date
    Nov 2013
    Posts
    1,482
    Promo (¢)
    100
    Thumbs Up
    Received: 6
    Given: 7
    every trader have to use their own edge to make profit on some or every market condition so this is must be a good point to start make an order for a position to trade but this habit different from other trade, so this is a unique way to make some profit from market.

    Not allowed!

  4. #33
    Banned
    Join Date
    Aug 2013
    Location
    State Himachal Pradesh
    Posts
    9,461
    Promo (¢)
    0
    Thumbs Up
    Received: 322
    Given: 542
    Great article value trader sir thanks for sharing I think if anybody want to know about his edge in forex then demo trading account will be best place for that where we can do a lot of practice and come to know about our edge I think real trading is also necessary where we can grow our skill and experience more nicely with our trading edge

    Not allowed!

  5. #34
    Registered user
    Join Date
    Mar 2014
    Posts
    7
    Promo (¢)
    205
    Thumbs Up
    Received: 0
    Given: 0
    Pleasant article importance dealer sir I enjoy your own posts constantly it is a great joy for me personally to read all of them my business is go along with you a dealer should be aware of concerning their border in currency trading a good border in currency trading assist a dealer to understand concerning their energy on this market place in addition to along with the idea we should talk to our weak points additionally.

    Not allowed!

  6. #35
    Rookie
    Join Date
    Sep 2013
    Posts
    2,779
    Promo (¢)
    160
    Thumbs Up
    Received: 45
    Given: 32
    This is an eye opener for all the aspirant forex traders who are wishing to continue in the forex trading business for longer period of time. Thus, there is need for the traders to always make sure that they should be able to make the best efforts from their side such that they can be able to implement their knowledge in the right manner for effective trading. Hence, there is need for the traders to realize and define their edge clearly for profitable trading.

    Not allowed!

  7. #36
    Banned
    Join Date
    Sep 2013
    Posts
    27,036
    Promo (¢)
    0
    Thumbs Up
    Received: 289
    Given: 50
    Quote Originally Posted by numan View Post
    yes forex trading is a chase and not a dart area the accomplishment band is aloof a amplitude advanced so all traders are surpossed to attending at the continued appellation goals in trading and appropriately should not be absent by the darshing of the squirel which appear in anatomy of accessory losses during trading
    There are so many reasons why the forex is been traded by the trader, and part of these reasons is the accessibility of the market with little effort but great result, I believee that this is the main edge that is even making the trader to submit well to trading excellently.

    Not allowed!

  8. #37
    Registered user
    Join Date
    Mar 2014
    Posts
    437
    Promo (¢)
    10,880
    Thumbs Up
    Received: 1
    Given: 0
    The trade is considered to be a good deal. After each transaction, the merchant can, because he expects that the success rate of loss of several successive calculation begins. However, some among us many profitable, you must not listen. The same amount of profit / loss. May Net loss / profit is rather poor. For day traders, they can calculate the week, but I have fallen for more than two hours, it is recommended that a non-local

    Not allowed!

  9. #38
    Rookie
    Join Date
    Sep 2013
    Posts
    2,779
    Promo (¢)
    160
    Thumbs Up
    Received: 45
    Given: 32
    Quote Originally Posted by cozard007 View Post
    There are so many reasons why the forex is been traded by the trader, and part of these reasons is the accessibility of the market with little effort but great result, I believee that this is the main edge that is even making the trader to submit well to trading excellently.
    True, the accessibility to this highly potential forex market is very much easy and once the traders have gathered some good knowledge regarding the forex market they can always be more confident enough regarding the trade that they can take. Thus, there is need for the traders to always provide themselves with the edge which can be helping them to make some good gains. I believe that the true edge for any trader is knowledge and experience.

    Not allowed!

  10. #39
    Registered user Quid's Avatar
    Join Date
    Feb 2014
    Posts
    5,903
    Promo (¢)
    -75
    Thumbs Up
    Received: 29
    Given: 12
    Quote Originally Posted by Ashviniurs View Post
    True, the accessibility to this highly potential forex market is very much easy and once the traders have gathered some good knowledge regarding the forex market they can always be more confident enough regarding the trade that they can take. Thus, there is need for the traders to always provide themselves with the edge which can be helping them to make some good gains. I believe that the true edge for any trader is knowledge and experience.
    It is all trye,we get the access to forex market very easy,the potential of forex trading is very much better,we get some knowledge very well here without nothing to hide from each other,the profit from the market definitely will be easy if we open our mind to the market which is risky then accept the learning.

    Not allowed!
    Finally successful traders

  11. #40
    Rookie
    Join Date
    Aug 2013
    Posts
    2,553
    Promo (¢)
    2,015
    Thumbs Up
    Received: 15
    Given: 56
    Quote Originally Posted by Ashviniurs View Post
    True, the accessibility to this highly potential forex market is very much easy and once the traders have gathered some good knowledge regarding the forex market they can always be more confident enough regarding the trade that they can take. Thus, there is need for the traders to always provide themselves with the edge which can be helping them to make some good gains. I believe that the true edge for any trader is knowledge and experience.
    only success so difficult in forex if only to join and so I think this is not so hard to get us and I have advice for traders in this business especially you are a novice trader then you should learn in this business from scratch to obtain trade will be better and will further develop yourself with the knowledge in this trade because of the knowledge you will be able to success in this business

    Not allowed!

Page 4 of 159 FirstFirst 123456781454104 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •