What is an Edge?
An edge is a combination of elements that you have studied that gives you a higher probability of a certain outcome. Essentially, you are making decisions based on something that is better than flipping a coin.
Rather than spending time trying to find some Holy Grail of trading, why not spend time finding a way to interpret market movements and go with the flow? To convey the point better.
The first thing you need to do is develop your trading strategy that fits your own profile ( I recommend you use my trading edge you will learn later).
There are evidently multiple edges to be exploited. The important thing is that you stick with one for some time and act in a consistent manner before deciding to discard it, continue with it, or modify it. Consistency is the key to building useful trade statistics that will allow you to quantify your edge.
The first thing you need to do is develop your trading strategy that fits your own profile ( I recommend you use my trading edge you will learn later).
There are evidently multiple edges to be exploited. The important thing is that you stick with one for some time and act in a consistent manner before deciding to discard it, continue with it, or modify it. Consistency is the key to building useful trade statistics that will allow you to quantify your edge.
For example, some traders are working full-time jobs, some dedicate the small amount of time to trading.
Those traders need to adapt medium term strategy because they are not in front of charts very often or you could trade very short term strategy wit your time available ( wich I don't recommend and you will learn why).
You need to trade a proven method, for example, I trade one price pattern a lot of the time, I understand it and makes sense to me. You will see these patterns happen over and over again, I keep it simple. It can also be the confluence of support and resistance, fibs, pivots...
Some people go more complicated as Eliot wave where you are labeling all price cycles and predict what's coming next. There is no right or wrong, there is a lot of different traders that trade a lot of different methods like this. The important thing is you are not just focused on technical analysis, as long as you are including fundamentals, market analysis, sentiment when you are applying your edge.
Whatever method you chose you want it to be something you see easily in the market, something that jumps out.
I believe that an edge starts with using a low-risk idea. A low-risk idea is an idea with a long-term positive expectancy, which must be traded with an appropriate position sizing method that allows for short-term fluctuations without compromising long-term results.
Trader Alen
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