The EDGE of a trader - Page 6
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Thread: The EDGE of a trader

  1. #1
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    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?

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    Last edited by Value trader; 03-26-2014 at 07:40 PM.

  2. #51
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    This is the market that is set already for the wise ones, we have many things embedded in our trading system, they are the one that will help us actually, in this, we have our ability to do the trading and management the account faster and better, we can quit the trade at will, what lese do we want, except that we are one that is not serious in trading, we have better edge even better than the market itself.

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  3. #52
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    [lang=ar]Does not require any age to work in the forex market forex market is open to anyone and can anyone that works in the forex market at any age, provided that trains and learns well and has a trading strategy successful to help him achieve high profits in the forex market and help him to succeed in trading[/lang]

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  4. #53
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    for some trader specially for profesional trade they can make a profit from a counter trend trade, but for newbie it must be very hard and dangerous but for profesional this is their ability to make profit when price move back and forth even the trade very strange.

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  5. #54
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    Quote Originally Posted by crazy girl View Post
    Does not require any age to work in the forex market forex market is open to anyone and can anyone that works in the forex market at any age, provided that trains and learns well and has a trading strategy successful to help him achieve high profits in the forex market and help him to succeed in trading
    It is opened for anyone who want to trade forex,there is no limit just for the expert to trade forex,even people who come here without knowledge and experience will be available to learn from demo account,so why we should find the side of limit for the trader in this market.

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    Finally successful traders

  6. #55
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    In Forex type capital is required in money, instead of this capital is very necessary in shape of techniques. So, a person should develop and improve the business skills. Capital is necessary but not more than the money. So, a good businessman should have the good business skills.

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  7. #56
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    [lang=ar]To me, it is the formality of the trader that is most importnat in the market. In the formation of real trading, it is better that you do it accurately the way that will limit the poer of the market and increase your onw trading expertise and power. All that is good for traders is lower riks and higher management of the trades.[/lang]

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  8. #57
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    Trader should to learn about forex trading in forex forum and mt5 forex forum is the best palce for learn and gain lot of knowledge about forex business many trader shared experience in this forum then you should use demo trading for practice try to analyzing the forex market trend and take a good decision to earn profit.

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  9. #58
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    Quote Originally Posted by alihandsome4u View Post
    Trader should to learn about forex trading in forex forum and mt5 forex forum is the best palce for learn and gain lot of knowledge about forex business many trader shared experience in this forum then you should use demo trading for practice try to analyzing the forex market trend and take a good decision to earn profit.
    Learning and continuous upgrading is always an added advantage for the traders so that they can be able to make some good gains with the high probability trades which they have taken in the forex market. Thus, one can not rule out the learning factor from their trading routine and always have this on mind to make sure that you should check for the important levels and economic events for executing the trades in the forex market.

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  10. #59
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    Quote Originally Posted by Value trader View Post
    Trading is a marathon and final result can be calulated only on a series of trades.
    yes i too advice all traders to take forex trading as a marathon and so they should place there eyes on the long term goals and should not be distracted by the dashing of the squirrel as they are aiming at the antelope

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  11. #60
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    It's not impossible for a forex trader to earn huge money.But you have to be patient for that.This can't be done within just a few days or months.You need very good capital for earning good profit from every trade and also huge experience is needed for that.Your daily profit will get increased according to the rise of your experience.

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