{"id":38158,"date":"2014-07-18T10:40:45","date_gmt":"2014-07-18T14:40:45","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=38158"},"modified":"2023-05-24T17:23:37","modified_gmt":"2023-05-24T21:23:37","slug":"what-do-you-need-first-to-gain-trading-edge","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/what-do-you-need-first-to-gain-trading-edge","title":{"rendered":"What Do You Need First to Gain Trading Edge?"},"content":{"rendered":"

I have been listening to a great deal of the Toddler music channel on Pandora so pardon my lyrics.<\/p>\n

First comes skill<\/p>\n

Trading Skill!<\/p>\n

Next comes edge<\/p>\n

Trading Edge!<\/p>\n

Then comes trading profits in your head<\/p>\n

…..And in your bank!<\/p><\/blockquote>\n

Our firm has edge during Russell imbalances.\u00a0 I was discussing this strategy in theory<\/em> with our college training class,\u00a0 exposing them to the different ways traders can find an edge in markets.\u00a0 One very ambitious student from China asked, “How do they do it?”<\/p>\n

This is a perfectly acceptable question.\u00a0 Or is it?<\/p>\n

I didn’t develop this strategy so I cannot share it.\u00a0 It’s not mine to share.\u00a0 Traders who sit on our desk eventually learn it from other traders after they have developed trading skill………. AFTER they have developed trading skill! \u00a0 Their trading skill allows them to understand, execute and manage these inefficiency opportunities.<\/p>\n

But even if I did, it wouldn’t help that ambitious student.\u00a0 He\/she doesn’t know how to trade yet.\u00a0 Learning an edge without trading skill is closer to dangerous than profitable.<\/p>\n

Most trading edges are very small.\u00a0 Some say great traders are right perhaps slightly over 50 percent.\u00a0 They know when they are right.\u00a0 They get big when they see it.\u00a0 They exit when the trades are not worth risk.\u00a0 Yes they have edge but its their trading skills that allow them to capitalize on this edge.<\/p>\n

First comes skill.<\/p>\n

Then you can find edge.<\/p>\n

Then comes profits.<\/p>\n

Related posts:<\/strong><\/p>\n

Finding and Increasing Your Trading Edge<\/a><\/p>\n

“You can be better tomorrow than you are today!”<\/em><\/p>\n

Mike Bellafiore is the Co-Founder of SMB Capital and SMBU, which provides trading education in stocks, options, forex and futures. Bella is the author of One Good Trade<\/a><\/em> and The PlayBook<\/a><\/em>.<\/p>\n

No relevant positions<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

I have been listening to a great deal of the Toddler music channel on Pandora so pardon my lyrics. First comes skill Trading Skill! Next comes edge Trading Edge! Then comes trading profits in your head …..And in your bank! Our firm has edge during Russell imbalances.\u00a0 I was discussing this strategy in theory with our college training class,\u00a0 exposing … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,4054],"tags":[788,2273,497,38],"class_list":["post-38158","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-in-house-training","tag-edge","tag-helpful","tag-skill","tag-trading","no-post-thumbnail"],"yoast_head":"\nWhat Do You Need First to Gain Trading Edge? | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/what-do-you-need-first-to-gain-trading-edge\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Do You Need First to Gain Trading Edge? | SMB Training\" \/>\n<meta property=\"og:description\" content=\"I have been listening to a great deal of the Toddler music channel on Pandora so pardon my lyrics. First comes skill Trading Skill! Next comes edge Trading Edge! Then comes trading profits in your head …..And in your bank! Our firm has edge during Russell imbalances.\u00a0 I was discussing this strategy in theory with our college training class,\u00a0 exposing ... 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