The importance of having a trading edge

The first thing that comes to mind for a trader to be consistently profitable in the markets is the importance of having a trading edge. So what is a trading edge? A trading edge is present when you can anticipate the evolution of the market for a specific period after specified market conditions have been met. This means if we trade that setup a number of times, we will be able to capture the edge and translate it into monetary terms. Traders must learn to think like casino operators — all casino operators have to do is keep the odds in their favor and have a large enough number of plays for their edges to have the opportunity to work.

“The bottom line is that you need an edge.” – Monroe Trout, retired hedge fund manager

A trader must adhere to the types of trades that tend to work — or in other words, types of trades that work more often than not — and play them as often as possible. Some trades will be winners, and some trades will be losers; as in the casino business, however, all that counts is the bottom line, not the results of each individual play by the casino’s customers. Traders must embrace this trading concept if they want to perform at a very high level.

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You will follow practical steps and acquire the essential skills a successful trader must have in order to consistently win, and you’ll also learn:

- how to develop a trading system
- how to utilize the best trading techniques within a trading methodology
- how to think about the psychological aspects of trading and the markets
- how vital it is to treat trading like a business