How do we "learn" to take losses and to follow our stop loss?

[the blades]

DB, I now know. Now that I know, because finally you explain yourself very well, my curiosity is finally satisfied. Thanks. Goodnight.

.....wibble.

 

[SOCRATES]

Soc - could you confirm that when at your computer you have under-pants on your head and a knitting needle up each nostril?

Just wondering like......

That's right. all your posts are very interesting but not for the reason you think.

 

[DaveJB]

An edge is an advantage.
You can obtain an advantage in a number of different ways - including mechanically, although it's debatable whether you'll manage that by purchasing some ready made wonder program. Knowing the instrument you are trading will often give you an edge over those who do not, although sometimes you find the character of that instrument changes and you have to set about becoming familiar with it in its new guise.

An edge, however, is an advantage - it is misleading to claim you can only obtain an advantage via one route.

 

[peto]

I agree with Split when he says.....

=Splitlink] An edge is the knowledge you have of the instrument that you are trading which will, consistently, get you in and out of the trade at the right time. The "right time" being before most of the others act on the knowledge that they have.

"before" must means seconds or split seconds, if we're talking daytrading. Hence Soc mus be right when he says...

The holders of an edge guard it jealously, because it is too precious to allow anyone who asks for it to have it..

Because once enough people are aware of your 'edge' they will try to replicate it, and in doing so fade it, and you will no longer be trading before the crowd, but become part of it, losing.

pete

wow agreeing with Soc, or even understanding anything he's said; that's a first!!

 

[nine]

This "before, secret, special, mystical etc etc" thing is not necessary.

Lots of edges work just because most people don't, won't or can't do them. They don't have to be very clever if one has the discipline to just wait for the setup to occur and then execute them as planned.

This is not to say that extra perception gained by getting to really know a market isn't useful --- just that it isnt necessary to trade profitably.

All credit to you for understanding Socrates though.

 

[Salty Gibbon]

Trading is not a particularly difficult pursuit to make money at provided you approach it in an intelligent, systematic and disciplined manner.

I do not believe you need to have any special "edge" or advantage in order to make money on a consistent basis from trading. I am able to pull money out of the market consistently and I certainly do not feel that I have an advantage or edge over anyone.

But I do believe that you need to have an " edge" in order to trade like a superstar and pull thousands out of the market on a daily basis - eg. taking advantage of multi-dollar runs on GOOG or SHLD consistently with size.

It's a bit like driving a car. Millions of people can do it without having any particular edge or advantage over anyone else. You do not need an edge to drive but you do need an edge to drive like Michael Schumacher.

I am convinced that this thing called "edge" is a natural inborn gift which, when combined with hard work and application, allows that talented person to perform with a keenly honed edge and allows him ( or her if you insist ) to outshine all others engaged in the same pursuit.

So, the idea that you need to possess this " edge" thing in order to trade profitably on a consistent basis, is in my outrageously humble opinion pure hype, and is designed to scare people away or induce them to buy books, courses, whatever. Who knows ?

 

[wasp]

Quite right.

I don't have 'an edge', just a set of rules which enables me to make money, day in, day out. By follwing these rules rigidly with discipline I make enough money every week to live very happily.

Rather then the need for this elusive edge, just a way of consistent profits is all thats required. I agree with Salty that its hype and it can scare people into spending money looking for 'the edge' through books and courses when they don't need to.

As long as your not trying to become a millionaire, I don't think its required.

 

[nine]

LOL Salty, Chris. I think we are struggling with a lack of definition of the damned word. I chose this one:

4: provide with an edge; "edge a blade"

If thats the case then the edge of my trading blade is "a set of rules for entering, stopping and exiting a trade that I have tested thoroughly after observing a market behaviour that appeared to be repeating often enough to provide me with a good living."

Nothing special - just like yours - nothing ultra clever, nothing transcendental or not theoretically repeatable by others. Not even slightly original. Just a nice edge for my trading blade that lets me cut up enough market meat to feed the family.

 

[Salty Gibbon]

Beer might give some people an edge.

 

[Splitlink]

This "before, secret, special, mystical etc etc" thing is not necessary.

Lots of edges work just because most people don't, won't or can't do them. They don't have to be very clever if one has the discipline to just wait for the setup to occur and then execute them as planned.

This is not to say that extra perception gained by getting to really know a market isn't useful --- just that it isnt necessary to trade profitably.

All credit to you for understanding Socrates though.

I would say that all edges work because of that. People don't have to be very clever, perhaps,
but those that have an edge will, obviously, get into, and leave, the market before those that do not. In which case, they will be the ones that make the most profit. The others, of which I am one, try to do the best we can with the abilities that God has given us.

Split

 

[Splitlink]

Quite right.

I don't have 'an edge', just a set of rules which enables me to make money, day in, day out. By follwing these rules rigidly with discipline I make enough money every week to live very happily.

On the contrary, I believe that you do have an edge, but you don't appreciate it.

Split

 

[Salty Gibbon]

No.

He is just competent and proficient at what he does without having any special magical, mystical quality commonly referred to as "edge".

 

[wasp]

Okay I'll rephrase that.

I don't believe I have the edge that Socrates is going on about

 

[dbphoenix]

Okay I'll rephrase that.

I don't believe I have the edge that Socrates is going on about

That hardly matters. If you have a consistently profitable strategy, you have an edge over those who don't, which is just about everybody. How you achieve that consistent profitability is irrelevant, as is whether or not somebody else can achieve it the way you do.

 

[Splitlink]

No.

He is just competent and proficient at what he does without having any special magical, mystical quality commonly referred to as "edge".

There is nothing magical or mystical about having an edge, unless you call having a hunch mystical, and I don't believe that hunches are going to be continuously successful. An "edge" is an advantage and we have drifted off of trading matters here, onto vocabulary.

Split

 

[dbphoenix]

we have drifted off of trading matters here, onto vocabulary.

Split

Which is why after being abandoned for two months with only 16 posts, it now has 96 . . .

I suspect that the guy who reopened it is wondering what he hath wrought.

 

[Salty Gibbon]

There is nothing magical or mystical about having an edge, unless you call having a hunch mystical, and I don't believe that hunches are going to be continuously successful.

I agree but Socrates likes to give that impression.

 

[Splitlink]

I agree but Socrates likes to give that impression.

Then tell him to put a soc in it!

Split

 

[SOCRATES]

Trading is not a particularly difficult pursuit to make money at provided you approach it in an intelligent, systematic and disciplined manner.

I do not believe you need to have any special "edge" or advantage in order to make money on a consistent basis from trading. I am able to pull money out of the market consistently and I certainly do not feel that I have an advantage or edge over anyone.

But I do believe that you need to have an " edge" in order to trade like a superstar and pull thousands out of the market on a daily basis - eg. taking advantage of multi-dollar runs on GOOG or SHLD consistently with size.

It's a bit like driving a car. Millions of people can do it without having any particular edge or advantage over anyone else. You do not need an edge to drive but you do need an edge to drive like Michael Schumacher.

I am convinced that this thing called "edge" is a natural inborn gift which, when combined with hard work and application, allows that talented person to perform with a keenly honed edge and allows him ( or her if you insist ) to outshine all others engaged in the same pursuit.

So, the idea that you need to possess this " edge" thing in order to trade profitably on a consistent basis, is in my outrageously humble opinion pure hype, and is designed to scare people away or induce them to buy books, courses, whatever. Who knows ?

Make up your mind, Salty, and then don't ruin it by contradicting yourself.

 

[Salty Gibbon]

Yes Gandalf