Muahahahaha!! Nice job
Do you have an "edge" in your trading?
- Thread starter HowardCohodas
- Start date
- Watchers 39
Muahahahaha!! Nice job
Hotch
Experienced member
- Messages
- 1,409
- Likes
- 256
So you were short, you went long and took 350 pts, then you waited for your original short to return to where you entered.
Instead you could of been short, exited your short. For a loss.
Got in on a long where you exited your short hedge, and exited that long at +350pts.
aka, THE SAME THING.
new_trader
Legendary member
- Messages
- 6,770
- Likes
- 1,656
Hotch, he must be a newbie. Anyone who can't take their losses on a trade doesn't understand what they are doing. They are guessing then "hedging"....taking a stab in the dark and "hedging". Newbies can't take losses, simple as that.
Triggerfish
Active member
- Messages
- 229
- Likes
- 14
Edge in trading is simply the ability of the trader to be RIGHT consistently. The markets are always right and the bigger question is are you the trader on the right side or on the wrong side?
Casinos have an edge hence they are in business, it is the odds that are in their advantage to win over time. So it is fair to conclude the odds, the rules of payout and restrictions of bets in place are part of a system of controls. eg. Roulette. These rules are there for their own benefit and not the punter.
In blackjack, it is similar but it is based on cards yet there is a possiblilty of beating the system because you can count cards, it is based on the probability and understanding the odds and play it to your advantage and not theirs. Casinos have rules and the punter usually plays along the rules, if you do that, you lose.
In trading, an example would be riding the trends. The markets moves in a particular way and for the trader to win, it needs to see this beforehand so to establish a system to take advantage of it. That system would be defined by rules to allow the trader to enter and exit to complete the trade or trades. The example is simply following your system to ride the trends, some will lose but most will win, and for the ones that wins, they can win more because you are allowing it to run, just like a trend. The edge itself is that your winners will earn you a lot more than the losers so the advantage you have over time is you will win.
The casino rules are a system and the punter who does not have one will lose.
The markets is a system and the trader without a plan / system will lose.
How can you beat an enemy without knowing their weakness?
Casinos have an edge hence they are in business, it is the odds that are in their advantage to win over time. So it is fair to conclude the odds, the rules of payout and restrictions of bets in place are part of a system of controls. eg. Roulette. These rules are there for their own benefit and not the punter.
In blackjack, it is similar but it is based on cards yet there is a possiblilty of beating the system because you can count cards, it is based on the probability and understanding the odds and play it to your advantage and not theirs. Casinos have rules and the punter usually plays along the rules, if you do that, you lose.
In trading, an example would be riding the trends. The markets moves in a particular way and for the trader to win, it needs to see this beforehand so to establish a system to take advantage of it. That system would be defined by rules to allow the trader to enter and exit to complete the trade or trades. The example is simply following your system to ride the trends, some will lose but most will win, and for the ones that wins, they can win more because you are allowing it to run, just like a trend. The edge itself is that your winners will earn you a lot more than the losers so the advantage you have over time is you will win.
The casino rules are a system and the punter who does not have one will lose.
The markets is a system and the trader without a plan / system will lose.
How can you beat an enemy without knowing their weakness?
No. I think you'll find he's actually really good. He did make 350 pips afterall.
counter_violent
Legendary member
- Messages
- 12,669
- Likes
- 3,787
Long and short the same instrument is not a hedge btw.
Yea. Thats true, but it makes sense to me to call it a hedge, instead of faffing about and causing confusion by saying its two separate open positions.
meanreversion
Senior member
- Messages
- 3,398
- Likes
- 538
What utter b0ll0cks.
The MAIN reason retail traders lose money is because they want to be right on each trade and can't admit when they're wrong. Your ridiculous comment only reinforces that destructive cognitive bias.
Pazienza
Senior member
- Messages
- 2,334
- Likes
- 442
Good point, although I do like the way that Livermore uses right and wrong to reinforce an important point. If one is wrong one wants to be right, the way to do this is to stop being wrong etc. If you follow that you won't blow up (unlike him, of course).
I think wanting to be right all the time is wrong, but right consistently changes things.
nunrgguy
Established member
- Messages
- 682
- Likes
- 125
Also depends on how much your right makes as opposed to your wrong loses of course
Yea im consistently right once out of every ten times.
volatiliti
Junior member
- Messages
- 48
- Likes
- 5
How can one be wrong or wright when trying to predict a random occurrence ?
Impossible
Impossible
volatiliti
Junior member
- Messages
- 48
- Likes
- 5
LoL
supports and resistances continue to fail .
Those that resort to your crystal ball method will ultimately lose their account .
This is a classic 95% strategy .
supports and resistances continue to fail .
Those that resort to your crystal ball method will ultimately lose their account .
This is a classic 95% strategy .
Hotch
Experienced member
- Messages
- 1,409
- Likes
- 256
Clearly you lost your money so long ago you no longer remember what coins are or anything about flipping them.
Barramundi
Active member
- Messages
- 208
- Likes
- 34
Lol.
Support & resistances can, do and ultimately must fail.
But one can do very well out of them prior to them failing.
And recognizing the difference between one that is holding, and one that is about to fail, can certainly sharpen one's edge.
volatiliti
Junior member
- Messages
- 48
- Likes
- 5
Do you use a crystal ball to recognize the difference ?
Barramundi
Active member
- Messages
- 208
- Likes
- 34
Never had much use for a crystal ball.
How I recognise the difference is one of those things I choose to keep to myself.
Needless to say, it ain't rocket science.
volatiliti
Junior member
- Messages
- 48
- Likes
- 5
I agree that you can do well from supports and resistances but hmmm....... you forgot to entertain the other equation . FAIL !!!!!!!
Barramundi
Active member
- Messages
- 208
- Likes
- 34
Edge x Application of edge = $
I apply my edge and I WIN!
And I don't use a crystal ball.
Nor could my edge, money management or risk management be construed as being akin to a crystal ball.
I am not sure why you are playing devil's advocate.
I apply my edge and I WIN!
And I don't use a crystal ball.
Nor could my edge, money management or risk management be construed as being akin to a crystal ball.
I am not sure why you are playing devil's advocate.
