The worst trader has the ability to be right 50% of the time mathematically according to the stock market. The current price of any (and every) stock is determined by the market to be at Delta 50 (meaning there is a 50/50 chance of going either way.
So how does even the worst trader find something that might increase their chance for a winning trade above the 50% level? Finding that possibility is called FINDING AN EDGE.
So what is an edge? An edge refers to a Consistent Advantage a trader can develop that will give them an advantage over other market participants i.e. the worst traders.
Making money in the stock market is rarely luck or just a random occurrence. Successful trades more often come from having a well-defined strategy that tips the odds in the trader's favor. So, how does one develop a strategy that helps them become a successful trader i.e. more wins and profits than losses.
A stock can only move in one of three directions, that is UP/DOWN or SIDEWAYS. To find that edge an educated trader frequently turns to indicators, oscillators and candlestick understanding. A problem is that indicators have the ability to repaint confirming a Paradox in life: "A thing and its opposite may both be true." Because of that paradox the intelligent trader looks for more than one indicator suggesting a change in direction. The oscillator meanwhile is showing you the former footsteps of the stock (ETF).
This brings us to ESSENCE which means: Stock movement is what it is regardless of what anyone thinks about it!
I would suggest that the most visual candle style is Heikin Ashi? If you are using regular candles I would encourage you to open two charts side by side with one regular candles and the other Heikin Ashi and determine for yourself which is easier to follow?
Next, find 2-4 indicators that look at direction and momentum from different perspectives realizing that they are all measuring the same "possible direction changes" but from slightly different perspectives. The EDGE is when two, or more, agree that that a change in direction is taking place (but again repainting is always possible). Also know what the market is doing overall as well.
Now, I have only been trading options for around fourteen years and have learned what little knowledge I have from The School of Hard Knocks which is actually a pretty good school for everyone since "those things we don't learn the first time keep repeating themselves until we do?"
I would invite you to look at some of my charting on this website which begin with the moniker: AGAIG
https://usethinkscript.com/search/2...1&c[nodes][0]=5&c[title_only]=1&o=replies&g=1
Once you find an EDGE that works for you begin using REPITITION for successful trades and you don't need a lot of stocks to make successful trades. My thinking the fewer is the better. I do NO SCREENING since all stocks do the same thing UP/DOWN/Sideways so why not trade one's that have good volatility and have good ATR (Average Trading Range) of 4+ or greater.
REPETITION: "Stock tendencies we refuse to learn are simply repeated until we do learn them if, and until, they are mastered. If not mastered they usually come back a little harder each time until we do."
Happy trading. It is possible to have an EDGE and move the 50/50% chance up to maybe a 75-90% or better!
So how does even the worst trader find something that might increase their chance for a winning trade above the 50% level? Finding that possibility is called FINDING AN EDGE.
So what is an edge? An edge refers to a Consistent Advantage a trader can develop that will give them an advantage over other market participants i.e. the worst traders.
Making money in the stock market is rarely luck or just a random occurrence. Successful trades more often come from having a well-defined strategy that tips the odds in the trader's favor. So, how does one develop a strategy that helps them become a successful trader i.e. more wins and profits than losses.
A stock can only move in one of three directions, that is UP/DOWN or SIDEWAYS. To find that edge an educated trader frequently turns to indicators, oscillators and candlestick understanding. A problem is that indicators have the ability to repaint confirming a Paradox in life: "A thing and its opposite may both be true." Because of that paradox the intelligent trader looks for more than one indicator suggesting a change in direction. The oscillator meanwhile is showing you the former footsteps of the stock (ETF).
This brings us to ESSENCE which means: Stock movement is what it is regardless of what anyone thinks about it!
An EDGE IN TRADING is most easily accomplished by having charting that is visual and easy to follow. |
Next, find 2-4 indicators that look at direction and momentum from different perspectives realizing that they are all measuring the same "possible direction changes" but from slightly different perspectives. The EDGE is when two, or more, agree that that a change in direction is taking place (but again repainting is always possible). Also know what the market is doing overall as well.
Now, I have only been trading options for around fourteen years and have learned what little knowledge I have from The School of Hard Knocks which is actually a pretty good school for everyone since "those things we don't learn the first time keep repeating themselves until we do?"
I would invite you to look at some of my charting on this website which begin with the moniker: AGAIG
https://usethinkscript.com/search/2...1&c[nodes][0]=5&c[title_only]=1&o=replies&g=1
Once you find an EDGE that works for you begin using REPITITION for successful trades and you don't need a lot of stocks to make successful trades. My thinking the fewer is the better. I do NO SCREENING since all stocks do the same thing UP/DOWN/Sideways so why not trade one's that have good volatility and have good ATR (Average Trading Range) of 4+ or greater.
REPETITION: "Stock tendencies we refuse to learn are simply repeated until we do learn them if, and until, they are mastered. If not mastered they usually come back a little harder each time until we do."
Happy trading. It is possible to have an EDGE and move the 50/50% chance up to maybe a 75-90% or better!
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