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What are your favorite trading myths?

  • #141
  • Nov 24, 2014 2:01pm Nov 24, 2014 2:01pm
Quoting hanover
{quote} (assuming that we're using Ryan Jones' definition of MM, i.e. edge = entries+exits; MM = position sizing. Some traders see exits as part of MM, which adds unnecessary confusion IMO)
Yes that is correct, MM is only the position sizing, scaling and other tactics, hedging ,etc. While the edge itself is the probability of each trade to be in your favor including the payout size which is defined as (EXIT-ENTRY) at BUY, (ENTRY-EXIT) at SELL, or in short the expected payout or expectancy which includes but not limited to the winrate.
"There's a sucker born every minute" - P.T. Barnum
  • #142
  • Nov 25, 2014 5:05am Nov 25, 2014 5:05am
Quoting Proximus
{quote} Ok but whats the point of BE, a long term gambler, if lucky at the end of his career gets to breakeven, very few very lucky people get to take out some from a casino. My research shows perfectly that the FX market (stock market is not) is exactly like a slot machine. It is a wealth redistribution mechanism, where obviously the big banks extract the most wealth from it. The only thing that separates the FX market from a classical gambling mechanism is that, the probabilities are not constant. While a slot machine has the same payout and same...
This is a great response and I thoroughly acknowledge your post. Thanks.

However, here is the rub..
How can there be any edge long term if there is no constant probability ?
A system can have a positive edge for some time but the edge can disappear at any time
  • #143
  • Nov 25, 2014 10:29am Nov 25, 2014 10:29am
Though i am new trader at this time i am trying to learn Price Action system. So far learn something and trying to make some profit with that
  • #144
  • Nov 25, 2014 2:53pm Nov 25, 2014 2:53pm
Quoting Mingary
{quote} This is a great response and I thoroughly acknowledge your post. Thanks. However, here is the rub.. How can there be any edge long term if there is no constant probability ? A system can have a positive edge for some time but the edge can disappear at any time
Because of timing, its not enough to know that you have and edge at this moment, its also important to know when it could dissapear or weaken.

If there is a CB interest rate increase sentiment, you might want to watch the news what they talk about it, if the media starts to ignore it, then probably the egde of that will dissapear too.

Its a question of timing, trade or not trade principle.
"There's a sucker born every minute" - P.T. Barnum
  • #145
  • Nov 26, 2014 1:49am Nov 26, 2014 1:49am
Hello Friends,

I have confusion, which trading system more helpful, Using indicator or Price action system ?

At this time i am trying to learn Price action system following Learn Forex Trading Using Price Action and PRICE ACTION TRADING WITH THE FOREX GUY

So far i think Price action system more helpful if we can learn well. in this why i join there. If anyone know more please share. I want to be a good trader and trying to learn trading strategy
  • #146
  • Last Post: Dec 25, 2014 12:47pm Dec 25, 2014 12:47pm
Quoting Proximus
{quote} . My research shows perfectly that the FX market (stock market is not) is exactly like a slot machine. It is a wealth redistribution mechanism, where obviously the big banks extract the most wealth from it.
can you prove it?
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