THE EDGE

Question 1

What is a trading edge

Answer 1

Your statistical outcome of winners/losser
All about probability

Question 2

How do you create an edge?

Answer 2

Your edge is created through rules of engagement:
Filters
For entering and exiting specific setups
Entry triggers
Setup Type
Time of day
Risk to reward

Question 3

Less is more

Answer 3

Keep your systems short and sweet
No more than 6 steps

Question 4

Keep it real

Answer 4

Creating your first strategy is not likely to work because of:

Lack of discipline
Lack of journaling and good record keeping
Lack of reflection
Poor Strategy psychology
Not following plan:system consistently
No knowledge of your trading edge

Question 5

Why is trading system beneficial

Answer 5

Gives you rules of engagement and a filter for looking at the markets

Without a filter you are trading with no standards.
No way to grade yourself
No way to make changes and improve
No way to keep emotions in. Heck

Question 6

How many trading systems should I have

Answer 6

ONE

Question 7

Know what timeframe you want to see

Answer 7

Entry criteria

Question 8

What is your trading strategy for

Answer 8

Differ at markets have different fees to be mindful of:
Spread
Margin

Question 9

Using the scientific method

Answer 9

Hypothesis: an educated guess
Experiment: design the experiment to test hypothesis
Data: Use trading logs
Observation: write down your observation in words and in pictures in your analytical journal.
Conclusion: Make conclusions about your observations from your log, analytical journal and experiment to fine tune entries, exits and trade management
Reflection: write conclusions in your reflective journal use it to fine tune strategy. Repeat