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,
- you either win more times then you lose
- win more money when you win, then lose money when you lose
- or both.
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!!!!
Cheers
Rish
