Find and perfect an edge

To make money trading , you need an edge . The edge has to be big and structural in nature so that you don't have to go hunting for edges daily or weekly or monthly.

Big and structural edges are inherent to nature of market behavior and have persisted for years.

Momentum is an example of structural edge in market. If you select stocks based on momentum either way ( with bullish or bearish momentum ) you can build edge by trading in direction of momentum or by trading a pullback in momentum stocks or by trading counter trend strategies on weak momentum stocks in hpe of turn in trend.

Momentum burst or impulse moves is another structural edge in market. When stock suddenly makes a move bigger than its recent days moves , there is a high probability it will move in direction of that momentum burst for 2 to 5 days. This structural edge has been in existence for hundreds of years.

Volatility contraction is big and structural edge. When a stock has low volatility period , that period resolves in a breakout. This allows us to scan for stocks with low volatility and enter in anticipation or enter on breakout out of such volatility contraction.

Mean Reversion is a big short and long term structural edge. Stocks that are up or down extreme amount on short term or long term timeframe revert and this is structural edge.

Earnings Surprise is a very big structural edge. Stocks with positive earnings surprise move in direction of positive or negative surprise.

This is not an exhaustive list , there are many more such structural edges in the market.

In order to make money in the market you need to take a big structural edge like this and marry it with execution edge to create your unique edge. This is where most traders have difficulties. And especially for new traders it can be very difficult to do that as they have low experience of doing trading .

If you want to make millions trading develop an edge. The earlier you can do that is your trading , quicker will be the rewards.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

3 comments:

Unknown said...: Can you expand more on "execution edge"; Feb 22, 2020, 2:05:00 AM
Pradeep Bonde said...: There are many execution edges, Speed is a big execution edge. I have perfected my process to a level where I enter most of my breakout trades in first 165 minutes of market open. Now that execution edge can gave several fold returns compared to a person buying a breakout later in the day. Similarly in anticipation setups I developed an execution edge by buying them in last 2 minutes before close a day earlier instead of buying them next day morning using Buy Stop limit Orders.
There are several execution edges like these. As a result of that for a same trade I can end up making more money or improve win rate compared to those with no execution edge.; Feb 22, 2020, 7:38:00 AM
markatkar said...: Thanks. That is a significant insight and edge.; Apr 11, 2020, 8:21:00 AM

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