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What Is a Trading Edge?
Hello traders! In today’s post, we’re diving into a crucial concept for anyone involved in trading or speculation: the trading edge. This is the first part of an ongoing series where I’ll share essential insights that I believe every trader needs to know to stand a chance at trading profitably. So, let’s get started by…
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How to Use a Trading Model And Profit From Errors
I have written about it many times in the past but never as clearly as I want to lay it out here and it’s how to use a model in order to trade. Many people on Twitter will often post about “entry models” or “smart money” models but can’t actually articulate what the model is.…
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Exploring DR Trading Ranges For Directional Bias
One of the hottest trading concepts on Twitter as of late has been what’s commonly referred to as DR/IDR, created by @IamMas7er. Its primary purpose is to give traders a certain degree of confidence that they are trading with the trend for that day. The mechanics of the concept are actually very simple. You use…
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How Good Is The Goldman Sachs Trading Desk? Better Than You Can Imagine…
When it comes to trading and investing, everybody and their momma is well aware of who Goldman Sachs. They are basically considered to be the place where the best traders in the world trade or have traded with in the past. If you’re like me, you know about them but are probably wondering… “How good…
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Linear vs Non-Linear Payoffs
One of the most important things a trader can understand is the payoff structure their strategy creates for them. This means the amount of money they stand to make or lose depending on how their trade ends up. When it comes to payoffs, there are Linear and Non-Linear Payoffs. The one you are likely most…
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The Market Maker’s Edge
When it comes to Roulette, the casino’s edge is the green square. This is what allows them to consistently make money playing the game. When it comes to trading, you need your own green squares. What are your green squares? I think it’s easy to understand what an edge is in the abstract and purely…
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Dynamic Hedging of Option Payoffs & Why Traders Need to Understand It
When it comes to options, one of the most appealing things about them is their payoff structure. Particularly the fact that it caps losses without using a stop loss and leaves room for unlimited profits. This results in a payoff function that looks like the graph below: This provides an advantage because, with a payoff…
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Why Markets Are So Hard to Trade
If you have done any amount of trading at all, one of the first things you quickly learn is, markets are really hard to trade. Sometimes it can literally feel like they are out to get you. “They” being a shadowy broker or big banksters. You know deep down this almost certainly isn’t what’s responsible…
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The Prop Firm Modified Ponzi Schemes
If you have been on any trading forum or looking at any social media related to trading, you must have seen at least 10 “Prop” firm ads by now claiming they fund trades and dole out massive payouts. At first glance, these seem like a really excellent service. It gives people with little money the…
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Where’s The Edge? The Golden Cross
Welcome to the first installment of a running series we will publish here at Riskcuit called “Where’s The Edge?”. In this series, we look at popular trading systems or strategies from Gurus, forums, books, and other places around the web to determine if they actually provide retail forex traders with any kind of edge. To…