Archive for category: Day Trading Education

When you first started to trade, how did you judge your results?  If you're like most novice traders you likely had little understanding of the concept of trading expectancy, so you focused almost entirely on your win rate in the early days.  You were probably trying to win 80 or even 90 percent of the time and it was a constant struggle.  You may have been able to achieve it for a short period of time, but your small wins just couldn't cover the big losses and once you hit an "unlucky" string of losing trades you just couldn't recover. Read more

It's simple - if you don't know what your trading edge is, then you probably don't have one.  If that's you, then you are basically a gambler because you're most likely allowing the market to hold the edge and are hoping you can beat the odds.  Even if you get lucky and start off strong in your trading career, the combination of a negative trading expectancy and limited equity means that the market is probably going to win in the long run.  If you're serious about making it in this business, this isn't the kind of professional approach you want to have.

On the other hand, being a trader is all about having a structured and profitable methodology where you know your edge in the market exists through both historic and real-time testing.  The trader knows he has a winning edge as long as he sticks to his plan and executes with consistency. Read more