Optimize Your Trading Edge: Increase Profits, Reduce Draw-Downs, and Eliminate Leaks in Your Trading Strategy

by Yoder, Bo

• ISBN13: 9780071498463
• ISBN10: 007149846X
• Edition: 1st
• Format: Hardcover
• Copyright: 2008-01-02
• Publisher: McGraw-Hill Education

Summary

You can't profit without an edgeWithout an edge, the costs of trading will cause you to lose money over the long haul. In order to gain an edge in trading, you must find a statistical advantage within a market. And the best edges come from market shifts fueled by a trader's psychology.In Optimize Your Trading Edge, investing expert Bo Yoder provides traders in every market with the insight needed to hone their current trading strategies with edge analysis.Optimize Your Trading Edgeexplains the important dynamics of statistical probability and how it applies to the unpredictability of the financial markets caused by human behaviorthat is, cognitive biases. This essential guide shows you how to evaluate the profit expectations of a specific trading strategy and fine-tune that plan to best exploit its market edge. Discover what successful traders have achieved through edge analysis:Increased earnings Reduced draw downs resulting in greater,low-risk leveraging A keener eye for finding and ending profit leaks Precision timing for trading a setupBo Yoder has taught thousands of traders worldwide in equities, futures, and foreign exchange markets how to increase profitability and optimize their edge regardless of the market environment. By making trading decisions based on statistical probability, you can trade with more confidence, control, and aptitude. Through clear explanations and real-world examples, you'll learn the valued secret of "trading smarter, not harder," and with the wealth of practical worksheets inside, you'll have all the tools you need to incorporate this proven method into your trading strategy.Understanding market movement and the cognitive biases driving them is a critical skill of the profitable investor. To gain a real edge, traders must determine their probability of success in any given market.Optimize Your Trading Edgedelivers the methods and tools that will become an essential part of your trading arsenal.

Author Biography

Bo Yoder is an internationally recognized trading instructor and the lead trader for RealityTrader.com. Mr.Yoder is the author of McGraw-Hill's Mastering Futures Trading (0-07-142034-1).

Table of Contents

Introduction	p. ix
What is "Edge?"	p. 1
The Payout/Payback Cycle	p. 19
Selective Aggression	p. 33
Developing a Business Plan	p. 45
Exploiting Your Edge	p. 57
Trader, Speculator, or Investor?	p. 75
Why Markets Move	p. 93
The Majority is Always Wrong	p. 107
The Trap of Pattern Recognition	p. 123
Monitor Your Highs and Lows	p. 135
What Kind of Trader are You?	p. 153
Hiring a Money Manager	p. 179
Putting it All Together	p. 193
Good Luck and Good Trading!	p. 197
Basic Edge Analysis Worksheet	p. 199
Trade Plan Worksheet	p. 203
Trading Challenge Worksheet	p. 205
Profit Compounding Worksheet	p. 209
Execution GPA Worksheet	p. 215
Index	p. 217
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