The "edge"?

Excelentj

Junior member
25 0
Hi team,

I've been trading now for 3 weeks on IGINDEX and it's going pretty bad (lol). I've lost £150 in these three weeks. Probably going to take a while before I start making constant profit so I dont think £150 in 3 weeks is too bad. The problem is that right now it just feels like gambling to me... everywhere I look it says I need a solid strategy that I stick to. I'm having trouble finalizing this strategy simply because my entry points just seem like speculation i.e the trade always goes against me straight away. Can anyone help me with this?

Secondly- I'm not sure what the "Edge" is? It sounds pretty important...

thanks,

J
 

Brumby

Established member
593 138
Hi team,

I've been trading now for 3 weeks on IGINDEX and it's going pretty bad (lol). I've lost £150 in these three weeks. Probably going to take a while before I start making constant profit so I dont think £150 in 3 weeks is too bad. The problem is that right now it just feels like gambling to me... everywhere I look it says I need a solid strategy that I stick to. I'm having trouble finalizing this strategy simply because my entry points just seem like speculation i.e the trade always goes against me straight away. Can anyone help me with this?

Secondly- I'm not sure what the "Edge" is? It sounds pretty important...

thanks,

J

An edge by simple definition is an advantage.

The market very often is chaotic but there are windows when it presents an advantage or edge to those participants that recognise the opportunities. This premise requires the market participant to recognise it when it presents itself; is able to execute the appropriate strategies to participate in it; and have the capability to exploit it effectively. The latter is the trader's edge. In essence, the appropriate strategy requires the combination of these two "edges".

The starting point of your strategy is therefore dependent on knowing when and how the market presents the appropriate opportunity. If you don't, trading is more akin to gambling.
 

PollyM

Active member
195 7
Evening Excelentj

There is gambling, there is speculation, and there is trading. Trading is knowing what you are doing.

To get straight to the root of it you really need to think about things in a different way to usual, which is not easy because the ego, the captain of your ship, takes some persuading.

Financial markets do not create economies, economies create financial markets. And economies are created through the cooperation of mass populations. Without mass populations there would be no financial markets. Financial markets can be thought of as superchargers of economies, with the physical output of the mass populations being the engine. When used properly, the financial markets can bring great efficiencies to economies, increasing output manifold for every unit of energy inputted.

Now, human output is facilitated by many environmental factors, and these factors exhibit multi-layered seasonal patterns. Accordingly, human output will move with these natural patterns, and so the financial markets will also echo these natural patterns.

The ego does not like this kind of logic because it has been taught that it has to be in absolute control, without realising that it is through harmonising with these natural movements that the 'holy grail' is found. Instead, the words 'random' and 'volatile' fly about, because the ego has to rationalise its actions in some way, believing that it is separate to natural movement.

In combining the Elliott Wave Theory with Hurst's Cyclical Analysis, this will give you a fair character model of the natural movement mentioned above.

First then, it is a good idea to repetitively practice process - think Karate Kid. Initially, the practicing will seem pointless and laborious, especially when applying small stakes. But once this becomes second nature, you will see the results flow, the reasons for which by that time you will fully know.

In practicing process you need to focus on a few simple methods, there's no need to overcomplicate things. Start with a standard indicator and stop loss method. Be in the same market as much as you can without chopping and changing. The indetrader website contains a possible learning framework which may be of use.

Hope this helps.

PS Please excuse any typos - it's a tad late and not proof read.
 

timsk

Legendary member
7,344 2,136
Hi Excelentj,
Welcome to T2W.

Along with the link provided by Shakone, check out the first two links in my signature, below. Once you've read them, come back with any further questions you may have. One other thing, if you're trading a live account with IG - stop now! You're nowhere near ready to use real money. By all means continue trading, but do so on a demo account trading paper money. No shame in that, I and many other long standing members have demo accounts and regularly use them for trying out new ideas or different markets etc.
Tim.
 

Hoggums

Senior member
2,176 878
I'm still trying to figure out what the U2 guitarist has to do with any of this?
 

trendie

Legendary member
6,533 1,126
Hi team,

I've been trading now for 3 weeks on IGINDEX and it's going pretty bad (lol). I've lost £150 in these three weeks. Probably going to take a while before I start making constant profit so I dont think £150 in 3 weeks is too bad. The problem is that right now it just feels like gambling to me... everywhere I look it says I need a solid strategy that I stick to. I'm having trouble finalizing this strategy simply because my entry points just seem like speculation i.e the trade always goes against me straight away. Can anyone help me with this?

Secondly- I'm not sure what the "Edge" is? It sounds pretty important...

thanks,

J

An edge is anything that allows you to judge an entry, or to avoid an entry, or to exit, at a perceived advantage, over and above any random or arbitrary entry or exit.
 

scose-no-doubt

Veteren member
4,630 954
ID have said an edge is any method that theoretically and logically has the capacity to generate a return given prevailing market conditions and trends.
 

NVP

Legendary member
37,536 1,988
hey dude

"an Edge" in its meaning as applied to Trading is defined in dictionary as :-

a favorable margin : advantage <has an edge on the competition>

so the edge is what makes you money in a market during the good times, and prevents you losing money in the bad times

so find it and sharpen it .....
N
 

PollyM

Active member
195 7
hey dude

"an Edge" in its meaning as applied to Trading is defined in dictionary as :-

a favorable margin : advantage <has an edge on the competition>

so the edge is what makes you money in a market during the good times, and prevents you losing money in the bad times

so find it and sharpen it .....
N

I'll second that motion.

Start simple, make it your minimum standard, and keep looking for ways to split the arrow, that is, surpass yourself.

Remember Excelentj, it's not an edge over other traders, there's plenty to go around, it's an edge or further insight into market movement, although try to see the market as your friend rather than competition.
 

Triggerfish

Active member
229 14
An 'edge' means having an IQ in the top 2% of the population.....

An interesting perspective and probably and more likely, corresponds to those who do succeed in trading.....BUT am sure some would agree that this is not a requirement.

Trading is simply buying and selling:
Buy low and sell high.....or.....buy higher and sell higher and
sell high and buy low.....or sell lower and buy lower.

Yet it is SO difficult to DO!.....WHY?
 
 
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