Find your Edge: The Secret to profitable trading
One of the main characteristics of a neo-trader, who performs consistently good, is the ability to participate in the market when he identifies an Edge, and carefully selects high probability winning opportunities.
It is a priority then, to dedicate time and effort in developing our own Edge. We should then, provide prolonged observation and interaction with markets, in order to identify the techniques, approaches, types of trade, phases of the day, levels of relevant price and most importantly, market behavior that we strongly believe will provide the opportunity for regular and frequent profit, with quantifiable and limited risk. Over time, one should develop a set of tools that allows to effectively select the best trading opportunity for a given market behavior. It’s this “tailor made” nature of the Edge, which may allow us to continuously profit from markets, develop a long term career, and for that reason, why many mechanical approaches are prone to short term success and medium / long term failure.