Friday, February 15, 2008

Trading Grey Bytes!!!!

What does a Trader see before entering a Trade?

What he thinks before putting his money in a Trade......

Do i hold an Edge?

By edge i mean a process which is an outcome of number of permutations and combinations
which shows favorable end result taken over a large sample trades.
In other words,

  1. you either win more times then you lose
  2. win more money when you win, then lose money when you lose
  3. or both.
Now here the first one comes only by experience and lot of dedication to get that refined touch.
The second one looks much easier than first one ,The key is to cut your losses and maximize your profits.The bottom line is a trader need to answer this question before taking a trade.

Do i have an edge?

If the answer is i am not sure or no,either the trader doesn't have a clear methodology or the Trade is questionable.

So next time you try to jump in a Trade do ask this question to yourself!!!!



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