Archives of “jack of all trades” tag

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Ten Ways to Trade With an Edge

  
  Education
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An edge is an advantage that a trader has over his competitors, allowing him to generate and retain profits from other traders . There can be many types of  trading edges through risk management, psychological management, and through better trading methods.

Here are a few:

  1.  A selective trader that only trades the best set ups, trends, and stocks has the advantage of waiting for the fat pitch and not just swinging at every ball thrown his way.
  2. Simply using correct position sizing can put you in the top 10% of traders simply by not blowing out your account and staying in the game by maximizing winners and minimizing losers..
  3. Risking no more than 1% of your capital per trade brings your risk of ruin down to almost zero and allows the trader to survive losing streaks. You have the edge of being around to have a winning streak later on.
  4. Only taking trades with a risk-to-reward of 3 to 1 or better gives the opportunity to have bigger winners than losers in the long run which is needed to be profitable. 
  5. Trading in the direction of the trend in your time frame gives you an edge over those losing money by fighting the trend.
  6. Having the discipline to follow a trading plan gives you an edge over those that trade based on fear and greed. (more…)

Types of People and Views on Market

  
  Education
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What are the many types of people who disseminate their views about the market? What are the major categories that I am missing or what is a better way to classify and make this useful?”

No doubt, there is a book to be done on the subject. That said…

This list is presented in order of published appearance. A caveat: “many fall into more than one category and mobile via age and wealth changes.”

The Connected Person, who makes you feel without saying it that she/he is or will be connected to the very lynch pin of policy at the Interior or some such.

Tout, who has position and wants you in for his/her favor.

Sponsor, who advertises or sponsors programs that treat him/her well.

Would-be-manager without funds impresses with his/her knowledge/ideas for you to join.

Old lion, who is not virile but still fights younger from replacing him/her in power/ romance.

Curmudgeon, who hates everything modern and wants all back to old days before tech.

Spankist, a beauty but aggrieved to give spanking unless things in order her/his way; observed to be everywhere and influence growing among spankisto and spankista’s.

Iconoclast, who is always contrary, never reads papers or travels, and feels market is wrong.

Hole-In-Shoes, who only drinks coke and eats hamburgers, never pays a fee more than 10%.

Sanctimonious, who pretends to be honest while blind to any firm dishonesty/misdoing.

Academic-Consultant, who manipulates numbers retrospectively to allure investors.

Mystic, who looks at stars and bent keys.

Old Timer, who is guided by iron castings reports and freight car loadings and newsprint figures [sample]: all as timeless methods (non retro) with healthy respect for knowledge.

Fund Manager, who is quoted as “good buy” on stock that he/she sold bulk of before recall.

Jack of All Trades, who explains every rise and decline due to (un)certainty about earnings and rates and other well chosen factors. Always welcome on TV because of his versatility. (more…)

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