What is a trading edge? How to get a trading edge for success in trading ?

What is a trading edge? How to get a trading edge for success in trading ? A trading edge is defined as a set of conditions which result in a net gain when used over a large number of trades.Let us think of a casino. The gambler can win once , or can win many times. But, if he gambles for a long period of time, he is going to lose money because the Casino receives Rs 100 and pays out Rs 97. The Casino has an edge. In the long run, the edge...

HOW DO YOU KNOW YOU HAVE A TRADING EDGE ?

HOW DO YOU KNOW YOU HAVE A TRADING EDGE ? 1. Your trading edge should be confirmed by statistical analysis. This way is the easiest to apply and the most difficult to create. If you have a statistical analysis of your trades then you know for sure if you have an edge. Suppose you have recorded the details of actual trades taken over a period of three years. There are five hundred trades and you have the reasons for taking each trade, together...

Dennis Gartman's Trading Rules

Dennis Gartman's Trading Rules 1. Never, under any circumstance add to a losing position.... ever! Nothing more need be said; to do otherwise will eventually and absolutely lead to ruin! 2. Trade like a mercenary guerrilla. We must fight on the winning side and be willing to change sides readily when one side has gained the upper hand. 3. Capital comes in two varieties: Mental and that which is in your pocket or account. Of the two types...

Bernanrd Baruch's 10 Investing Rules

Bernanrd Baruch's 10 Investing Rules 1. Don't speculate unless you can make it a full-time job. 2. Beware of barbers, beauticians, waiters — of anyone — bringing gifts of "inside" information or "tips." 3. Before you buy a security, find out everything you can about the company, its management and competitors, its earnings and possibilities for growth. 4. Don't try to buy at the bottom and sell at the top. This can't be done — except by...

James P. Arthur Huprich's Market Trusms And Axioms

James P. Arthur Huprich's Market Trusms And Axioms 1. Commandment #1: "Thou Shall Not Trade Against the Trend." 2. Portfolios heavy with underperforming stocks rarely outperform the stock market! 3. There is nothing new on Wall Street. There can't be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again, mostly due to human nature. 4. Sell when you can, not when...

James Montier's 7 Immutable Laws Of Investing

James Montier's 7 Immutable Laws Of Investing 1. Always insist on a margin of safety 2. This time is never different 3. Be patient and wait for the fat pitch 4. Be contrarian 5. Risk is the permanent loss of capital, never a number 6. Be leery of leverage 7. Never invest in something you don't understan...