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What Is An "Edge" IN Trading?

  • #21
  • Apr 1, 2009 11:23am Apr 1, 2009 11:23am
An edge is a system or method that gives you a positive expectancy.
TRO
  • #22
  • Apr 1, 2009 11:30am Apr 1, 2009 11:30am
An edge is a sharp side formed by the intersection of two surfaces of an object.
forexflash
  • #23
  • Apr 1, 2009 12:13pm Apr 1, 2009 12:13pm
Thank you for sharing all your thoughts. To me, there is just so many
different interpretations of what an Edge can be. My main reason for
starting this thread was to get other peoples feedback in hopes of being able
to find out what my trading edge is, then applying it to my trading plan.. I can see I am going to have to tweak my plan tonight and really sit down and define what my edge will be... I guess im confusing my trading plan as my edge and my edge as my trading plan. Maybe they are one in the same???

Thanks again for all your thoughts...
Things can get Real ugly, Real quick!!!
  • #24
  • Apr 1, 2009 12:14pm Apr 1, 2009 12:14pm
Non Bold below posted by Mparker:

in complete agreement with maheswara, although i dont think of it as an "edge" since trading is what i do for a living, i find EXPERIENCE and the ability to understand what the market is doing at this moment in time to be ALL that is needed to maintain a decent growth level.

the common psychology behind the word "edge" is similar to the feelings that this is a "zero sum game" or even the silliness surrounding those who read "the art of war".

Are you saying your opinion is that Forex is not infact Zero sum?
If you beleive It is not Zero-sum then you are saying that more money can be made from trading than is lost(or v.v.), as a whole.

NONE of this is a "battle" between some unseen "them" and yourself --- if you trade with a broker, for the length of your trade the broker is taking the opposite side of your trade and if you succeed in "winning" your trade, the broker will get that back later by shorting a trade which puts the money right back in their pockets --- THAT and the spread is what keeps them in business and YOU are not fighting ANYONE !

Have you got any proof that retail brokers take speculative possitions? Wouldnt that defeat the object of Being a broker, near risk free profits.

EXPERIENCE is what puts you AHEAD, as it does in any field that exists, but that EXPERIENCE only allows you to KNOW WHAT TO DO, and thats the bottom line.

Most new traders LOSE because theyre not aware of how to REALLY TRADE, and so everyone is looking for that "edge" as they do for the "holy grail" and neither one of them exist !

Yesterday I was interviewing new traders for my company, and so i had to preset the days trading that is usually my portion ---- by the time I shut down the workstation, after being away from it but for a few minutes between interview, i had gained almost 700 pips ---- this is NOT to brag, as 700 pips is no record, BUT it is to point out that without even being at the computer, ANYONE with experience can do this !

I have NO edge, but i do have experience and knowledge of where prices are going and whats going on in the market, even though my connection is a cable and not personally being there, and ANYONE can learn, with a little bit of time and study, HOW to do this easily and successfully !

EDGE is a hope and a prayer for those who do not have the EXPERIENCE yet --- just as playing war has nothing to do with trading.

Its SIMPLY a matter of KNOWLEDGE and the applied use of that knowledge as pertains to the subject of trading.

I maintain a thread over in the rookie section, that teaches how to accumulate 350 pips a day which i shall grant is not learned in a day, but we have newbs there now coming up with over 150 pips a day, and theyre still learning, and NON are looking for an EDGE !

For you to be teaching people how to trade, you need to be suplying all trading info, where to enter, where to TP and more importantly how to place a SL. If you are not teaching others exactly how you turn a profit including all the above variables, then that is an incomplete method and nobody knows If each individual will be profitable.

enjoy and trade well

mp

I would have commented on your statements regarding an 'Edge' but It would have been rather pointless, we are wandering in to opinion territory there and nothing can be proven either way.

Take note, this is not an attack, just two questions and a statement. I have no intention of this turning in to some shit slinging.
Living the adventure in my head.
  • #25
  • Apr 1, 2009 12:27pm Apr 1, 2009 12:27pm
Quoting Atltrader
Thank you for sharing all your thoughts. To me, there is just so many
different interpretations of what an Edge can be. My main reason for
starting this thread was to get other peoples feedback in hopes of being able
to find out what my trading edge is, then applying it to my trading plan.. I can see I am going to have to tweak my plan tonight and really sit down and define what my edge will be... I guess im confusing my trading plan as my edge and my edge as my trading plan. Maybe they are one in the same???

Thanks again for all your thoughts...
IMO...

You need to find an edge first, and then build a trading plan around it, it wont work any other way.
Living the adventure in my head.
  • #26
  • Apr 1, 2009 12:42pm Apr 1, 2009 12:42pm
well well well
to have an edge in this business is not to know how to beat the market but rather to know how to stay in the game and for that you only need two things:
1- know how to read the chart
2- control your fear and greed
Edge= Read Chart - (Fear+Greed)

Sucess is not an event . It is a process.
  • #27
  • Apr 1, 2009 12:44pm Apr 1, 2009 12:44pm
Quoting Leonlorenzo
Are you saying your opinion is that Forex is not infact Zero sum?
If you beleive It is not Zero-sum then you are saying that more money can be made from trading than is lost(or v.v.), as a whole.

Hey leon --- nice to see ya

I FIRMLY believe that "zero sum" is the deep hidden desire behind someones attitude that does NOTHING else in the world for the common good, except perhaps pay taxes, and we know they will try to hide as much of that as possible. --- my thoughts are below, so no need to go into them again, but to me its simply a silly game played with real money, more akin to 3 dimensional chess than any "warfare" or "beating someone else" principals !

For you to be teaching people how to trade, you need to be suplying all trading info, where to enter, where to TP and more importantly how to place a SL. If you are not teaching others exactly how you turn a profit including all the above variables, then that is an incomplete method and nobody knows If each individual will be profitable.

it is fully understood that I can not expect each and every one of those 44K viewers to go forth and create fortunes in the forex market in the next two days, but i have every reason to believe that i may just help change the drop out rate to below its commonly accepted 95%, IF the peeps pay attention, test the principles of what i teach completely until they understand FULLY and then go forth with CONFIDENCE and KNOWLEDGE.

I DO teach where to enter, where to place your tp's and allow others to advise on sl's as i have NO IDEA of how to use them, except NOT to use them ---- by the very definition of what you consider TEACHING, I have achieved each and every definition, have i not ?


I would have commented on your statements regarding an 'Edge' but It would have been rather pointless, we are wandering in to opinion territory there and nothing can be proven either way.

I agree --- there is more than one way to dress your mistress, and I only have my way !

Take note, this is not an attack, just two questions and a statement. I have no intention of this turning in to some shit slinging.

heck, i wouldnt even think of slinging popcorn --- gets nowhere !
enjoy and trade well

mp
  • #28
  • Apr 1, 2009 12:45pm Apr 1, 2009 12:45pm
Quoting mparker
enjoy and trade well

mp
Lol, fingers crossed you wrote the post in Word first.

Leon
Living the adventure in my head.
  • #29
  • Apr 1, 2009 12:49pm Apr 1, 2009 12:49pm
once again my friends, youre all nibbling AROUND the base of the issue

ALL of the things you say depend completely on EXPERIENCE and without that, the knowledge you need to get this imaginary "edge" simply doesnt exist

tell the newb anything, but without time spent in trading, none of it registers or makes sense --- each day a newb learns more, and day by day they realize just how much they DIDNT KNOW --- and telling them to do this or that is useless UNTIL they KNOW what this and that are !

give yourselves another few years and see how much more you know then as opposed to NOW, and youll begin to understand !

mp
  • #30
  • Apr 1, 2009 12:50pm Apr 1, 2009 12:50pm
ive found that i can save it and then delete the original and paste and it works fine, but it IS having the page open for too long that creates the problem on quoted text, so thnx for the info yesterday

mp


Quoting Leonlorenzo
Lol, fingers crossed you wrote the post in Word first.

Leon
  • #31
  • Apr 1, 2009 1:17pm Apr 1, 2009 1:17pm
Quoting Money4Nothing
An edge is a system or method that gives you a positive expectancy.
Or another way to say it is:
A system or method that gives you a positive expectancy has an edge.

Put that with my previous post:
Edge - Higher probability of one outcome over another.

How about:

An Edge is a system or method that gives a higher probability of one outcome over another with positive expectancy.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #32
  • Apr 1, 2009 1:21pm Apr 1, 2009 1:21pm
Quoting Leonlorenzo
IMO...

You need to find an edge first, and then build a trading plan around it, it wont work any other way.

Well said.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #33
  • Apr 1, 2009 1:22pm Apr 1, 2009 1:22pm
Quoting LasVahGoose
Or another way to say it is:
A system or method that gives you a positive expectancy has an edge.

Put that with my previous post:
Edge - Higher probability of one outcome over another.

How about:

An Edge is a system or method that gives a higher probability of one outcome over another with positive expectancy.
I think this may just sum up the definition in my book.. Great job! I like this interpretation!
Things can get Real ugly, Real quick!!!
  • #34
  • Apr 1, 2009 1:23pm Apr 1, 2009 1:23pm
Quoting LasVahGoose
Or another way to say it is:
A system or method that gives you a positive expectancy has an edge.
Put that with my previous post:
Edge - Higher probability of one outcome over another.

How about:

An Edge is a system or method that gives a higher probability of one outcome over another with positive expectancy.
A simple bollinger can be defined as a edge if you know how to use it, and that comes with EXPIRIENCE!!!
There is no edge, it is just a another word for profitable trading......either you know how to trade, or you dont!
THERE IS NO MAGICAL FORMULA THAT WILL MAKE YOU WIN.
forexflash
  • #35
  • Apr 1, 2009 1:31pm Apr 1, 2009 1:31pm
Quoting FOREXflash
A simple bollinger can be defined as a edge if you know how to use it,
and that comes with EXPIRIENCE!!!
I disagree.

An edge to me Is a cause and effect. A bollinger band offers very little predictive value, and you have no idea why price may turn at the outer band.

Like I said to Mparker before, this is a debate that cant have any conclusion except agreeing to dissagree.
Living the adventure in my head.
  • #36
  • Apr 1, 2009 1:47pm Apr 1, 2009 1:47pm
Quoting FOREXflash
Ok...WON'T FIND HERE!!!
And yes I agree with you, you can find edge anywhere...Im just looking
at one on the corner of my computer table.

A fine contributor to the thread.

We are learning much from your humor.

m
  • #37
  • Apr 1, 2009 1:47pm Apr 1, 2009 1:47pm
Quoting FOREXflash
A simple bollinger can be defined as a edge if you know how to use it, and that comes with EXPIRIENCE!!!
There is no edge, it is just a another word for profitable trading......either you know how to trade, or you

dont

!
THERE IS NO MAGICAL FORMULA THAT WILL MAKE YOU WIN.
What does a bollinger band have do with what I posted?


You say there is 'no edge' and then say an edge is another word for profitable trading. How can there be an edge and no edge? You just defined what an edge is in the same sentence where you said an edge doesn't exist.

Your statement "knowing how to trade profitably" basically is saying you have an edge. I agree with this statement because if you didn't have an edge you wouldn't be profitable over the long run.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #38
  • Apr 1, 2009 1:51pm Apr 1, 2009 1:51pm
LOL....paradox, isnt it!??
When I say using bollinger can be an "edge", I dont mean that anybody can take it, and trade it profitable!!!
I trade BB, but from my experience, I can easily see what is happening
in background, where the price can go, what are sr levels...etc
Expirience is what makes you profitable, not a magical formula!
forexflash
  • #39
  • Apr 1, 2009 1:52pm Apr 1, 2009 1:52pm
Quoting LasVahGoose
What does a bollinger band have do with what I posted?


You say there is 'no edge' and then say an edge is another word for profitable trading. How can there be an edge and no edge? You just defined what an edge is in the same sentence where you said an edge doesn't exist.

Your statement "knowing how to trade profitably" basically is saying you have an edge. I agree with this statement because if you didn't have an edge you wouldn't be profitable over the long run.
Nice.

m
  • #40
  • Apr 1, 2009 1:55pm Apr 1, 2009 1:55pm
Quoting FOREXflash
LOL....paradox, isnt it!??
When I say using bollinger can be an "edge", I dont mean that anybody can take it, and trade it profitable!!!
I trade BB, but from my experience, I can easily see what is happening
in background, where the price can go, what are sr levels...etc
Expirience is what makes you profitable, not a magical formula!
Trading isn't some kind of gift... what horseshit.

Trading is a combination of varibles executed in concert to produce a desired outcome.

That outcome is winning.

If you want to pontificate at least do so responsibly.
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