Mar 8, 2017

Discretionary Traders (How to Know If There Is an Edge Present)

How do you know if you really have a trading edge if you are a discretionary trader? You can see it in the shape of your equity curve. If it shows some consistency of making money without large drawdowns, then over time you can begin to conclude that you have an edge. People who are very good at trading the markets have a high level of confidence, which is impossible to gain unless you have an edge. 

It’s something you have to feel and believe on your own. Unlike in systematic trading, where the metrics of a system prove the system’s edge, it is not something that is definitively provable. 

If you are able to make money with some consistency, with a good control of your losses, you get to the point where you feel you have an edge, and your equity curve confirms that. You cannot think you have an edge if you lose money for a long time—that is insane! 

Even discretionary traders need to have an edge, which does not exist without a methodology. In fact, I have never met anybody with an edge who does not have a very specific methodology.

You will follow practical steps and acquire the essential skills a successful trader must have in order to consistently win, and you'll also learn:

- how to develop a trading system
- how to utilize the best trading techniques within a trading methodology
- how to think about the psychological aspects of trading and the markets
- how vital it is to treat trading like a business

As you master this breakthrough program, you'll build yourself a distinctive trading signature.

"It took me five years to become a profitable trader and almost another five years to become extremely consistent. If I had come across the right trading material and concepts earlier, I’m sure the learning curve would have been far shorter. This practical book will give you the materials and concepts I wish I’d had early in my career." - Henrique M. Simões

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