What is considered an edge? - page 6
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
inside information
A friend had an inside information.
He bought a stock at the price of 10$.
He hold it for 2 years and sold just before the selling of the company at 100$.
You see on my example that direction, distance, time in and time out make an edge.
My friend didn't need to know every price movement during those two years.
He needed enough information to make a profitable decision about when to enter, what move to expect, and when to exit
That is an edge.
Please clarify the market, the meaning, and the exact info of inside information that YOU had
You initially argued that with a real edge, you would know the outcome before it happened.
In trading, KNOWING THE OUTCOME means knowing both the direction and the distance (and maybe the time too) of the price movement.
Knowing only the direction is not the complete picture. You could predict the direction correctly and still lose money if the price moves against you first, reverses before reaching your target, or moves too little to cover your risk and trading costs.
Direction alone provides only part of the information needed to determine a profitable trade. The distance matters just as much.
So, if your definition of a real edge requires knowing the outcome in advance, are you saying you knew all three info? 1 the direction 2 the extent of the price movement 3 the time it will hapened and the time it will last before it happens?
But that does not make sense. If you knew the outcome how can you stretch it?
I think you misunderstood me a bit, by stretching it I meant I tried to get more out of the move. I got greedy, which later backfired and made me lose the trade instead.
You cant have a firm target trading with this kind of information, you close the trade before the big traders closes theirs.
And as you probably know, brokers don't always acknowledge your stops either.
If you can see where most stoporders are located, you can choose the best place to trade them. Like previous high/low and so on.
The time when this happens is when those levels are hit.
You cant just trade every cluster of stoporders or every high/low for that matter. But price tend to go towards the location of the stops.
The extent of the move depends on several variables, one of them being how big the clusters of stops are.
There are of course more to it than this, but this is the information I am willing to give.
A friend had an inside information.
He bought a stock at the price of 10$.
He hold it for 2 years and sold just before the selling of the company at 100$.
You see on my example that direction, distance, time in and time out make an edge.
My friend didn't need to know every price movement during those two years.
He needed enough information to make a profitable decision about when to enter, what move to expect, and when to exit
That is an edge.
Please clarify the market, the meaning, and the exact info of inside information that YOU had
I didn't say that I had any inside information, just the info where most stoporders were placed. That info was sold by large banks.
But the inside information I was talking about was knowing news before it was officially announced.
Trump and his friends does this all the time, making them billions.
I have written other examples further back in this thread, maybe you should go through it again.
Congratulations to you friend for making a move on the information he got.
price tend to go towards the location of the stops.
The extent the move depends on several variables.
Trump and his friends does this all the time, making them billions
I see hypothesis, uncertainity, rumors, beliefs.
Where is the real 100% certainty edge?
I see hypothesis, uncertainity, rumors, beliefs.
Where is the real 100% certainty edge?
As I said before, its a hard pill to swallow for retailers...
I m sure you know mr millionaire trading with 500$
I see hypothesis, uncertainity, rumors, beliefs.
Where is the real 100% certainty edge?
If you can see where most stoporders are located, you can choose the best place to trade them. Like previous high/low and so on.
Hello,
I am watching the conversation from start, but I may say I am not so sure what you are talking about; you got me confused because all your talked "edge", as I can see it, is about mostly illegal activities, like "insider trading".. Also, you are talking about order book and so on, but you should be aware that on normal regulated markets, like CME, you can have all the info you are bragging about - ie about orders.. But in those markets, stop orders are hidden (until triggered), unlike normal limit ones.. so are you sure that when you are referring to stop orders, you are referring to normal limit ones?
Also, you should now that likely there should be no strategy without losses; but with more tools/info, you just go up the ladder for possibly more gains - but you have to be able to deal with the more difficult competition there is as well
greets
I am watching the conversation from start, but I may say I am not so sure what you are talking about; you got me confused because all your talked "edge", as I can see it, is about mostly illegal activities, like "insider trading".. Also, you are talking about order book and so on, but you should be aware that on normal regulated markets, like CME, you can have all the info you are bragging about - about orders that is; But in those markets, stop orders are hidden (until triggered), unlike normal limit ones.. so are you sure that when you are referring to stop orders, you are referring to normal limit ones?
I m sure you know mr millionaire trading with 500$
First of all, I do not have this information anymore. I thought I made this clear when I said many years ago I had this information.
Also read when I stated that I lost both the information and my money for a completely different reason than losing it to the market.
Have I said that my EA shown here in mql5 have anything to do with what I am discussing in this thread other than that I use a grid system and that I get my trade conditions outside of the forex realm?
Seems like people here are reading what they like to read just to fill their own judgement.