In this conversation, Brad and Brent explore the concept of a trading edge, discussing how to identify it, recognize when it is lost, and the emotional aspects of trading. They emphasize the importance of self-awareness and backtesting in maintaining a successful trading strategy, while also acknowledging the inevitable struggles traders face throughout their careers.
Takeaways
- Defining your trading edge can be subjective and varies for each trader.
- A clear sign of losing your edge is when past successful strategies no longer yield results.
- Emotional dissatisfaction in trading can indicate a loss of connection to your strategy.
- Backtesting can help identify when your edge is no longer effective.
- Experiencing larger losses than expected is a significant red flag.
- Trading should bring joy, but it also comes with stress.
- Long-term traders often face periods of doubt and disconnection from their work.
- Admitting when a strategy isn't working is crucial for growth.
- Rebuilding after losses requires humility and self-reflection.
- Finding a new edge is possible with the right mindset and approach.
- Finding Your Trading Edge: A Deep Dive
- When Your Trading Edge Disappears
- "How do you know when your edge is gone?"
- "I feel like shit about what I'm doing."
- "You need to go back to the drawing board."
