Thread: What Is An quotEdgequot IN Trading?

All too many times I hear of this requirement.
Something which gives you the upper hand on the next man so that you may take his money before he chooses yours! I have heard this time and time again, and nicely.... I guess Do I have an edge?? How do I get an edge Are Banks, Hedge funds, MM's the only people that truly have an edge in that they are the ones with enough money to really move the markets? Is the notion that a tiny retail trader like myself can compete and have an edge over these guys simply an illusion?? Id like to hear from other people on what their thoughts could be on this particular topic....

Do you have an edge?? In that case, how did you find it? How can you define what your edge could be? How can you know if your edge is working, and when it is not working?
Is there ever a time where your edge stops working and needs some alterations?

No, Im not trying to steal your edge, However, I would like to know how I can define my Edge. Until I can find out what my Edge could be??, my trading program is incomplete

Im looking forward to some feedback!

Great day. .

Edge - Higher probability of one outcome over another.

I guess that goes for having the knowledge of any special circumstance that again and again has turned out to be a reliable information regarding the results of any commerce. To possess a information provides you an advantage on the trading, isn't it? For mepersonally, I use to inspect the launch of the most important fundamentals on the forum calendar and see again and again as the timing of this launch comes close, the prices begin moving faster, after the launch, the prices just go one direction, ups or downs, just have your trigger prepared and follow the crowd, I suggest after doing your whole homework on the growth of the pair up to this moment . Saw no the launch of this Manufacturing PMI at Great Britain with a positive result and a leap of more than 50 pips up in under two minutes.
I mean, after using of the resources available to everyone else, just having this piece of knowledge really provides you an Edge.
Hope that sharing my expertise with you was useful.

Your edge is that you...

I am looking at it this way:

The market is really good at what it does - easing commerce. It's not ideal though; as trading occurs inefficiencies occur and are subsequently adjusted for. If you may find inefficiencies to exploit then the market mechanism will identify them and bring thing back into sync - carrying your own (ideally correctly positioned) trade with it.

I am looking here for advantages (plural):

Market Structure Orderflow; Pairs Correlations

I can not really elaborate since I am just barely starting to understand the topic. Not trying to hide anything. Perhaps others with more experience can declare more. I think that it provides more promise than searching by throwing combinations of indiors on a chart.

Another reply you may notice is that people are finding an edge inside of their head - i.e. plogical. That's valid too IMO but, probably not exactly what you're asking about.

Good luck finding what you're after! (Here's the paradox: You need to understand what you're searching for before you may find it. But do you understand what to look for? That's why, in my case, I am looking to the market itself - instead of criss-crosses on the surfaces of charts.)

Broadly speaking, anything could get you ahead of the match could be deemed as a edge.

There are various kinds of edges:

Speed advantage - if you are the quickest squirrel on the cube then you'll be the first one to grab up the acorn. This is a hard edge to maintain as there's always someone faster out there who you are competing with to get a particular acorn or fill as matches are a rare commodity.

There are information edges - getting better information than everybody else.

The two edges above are not achievable by the majority of people.

There are egic edges - you have built and implemented a much better mousetrap. Now you just have to trade it as it was designed along with the law of large #s will make your account to swell as your egic edge bears fruit. This is only one of those areas where people have a opportunity to get forward by executing way above egies! If you are going where no man has gone before almost by definition that the edge is expanded. If you are doing exactly the same things that everybody is performing (here on FF and other online boards) then by definition you're not standing on the edge, but at the center of a group or herd as you will. And an unfortunate twist will be made by a herd of lemming rodentia and just keep on going.

There's luck- some people today think that they have an advantage because what they do appears to be working or else they think that they are smarter than the average bear. (95 percent of people think that they are smarter than everybody else and most of them are wrong lol.) And then it stops functioning and they wonder what happened to their advantage? It's easy to get this occur. Luck is a edge because when the leprechaun decides his time is up, your edge goes poof*.

There's plogy - some people today think their zenlike calmness and karate kid mentalities is a edge. Or the simple fact that they're in tune with their feminine side gives them the ability to feel that the markets. It is not a real advantage in the sense that getting mastery of the game is a lock for making $$. But being calm of mind, grateful and receptive can prevent lots of the issues traders confront, and can help in executing the system and discovering new and ever better egies which are there just for your growing.

One final thought - if you don't know what your advantage is, then you truly don't have one.

FXEZ, Article.

A good point is the one about finding your edge on one of these system threads - actually small opportunity IMO of holding water long term.

Also, I was able to think the If you do not know what your edge is... item was B.S.. Not anymore. You'll also find out.

I believe nailed it. Essentially forex is just a game of probabilities. If you can recognise a situation from the market where there is a probability that x is going to happen then you'll have an advantage.
Money management, trading plogy etc are all important but they are useless without that advantage.

Far from being an autority on a topic, I think that having:
1. Plan
2. Discipline
Will constitute an edge, since majority will break their own rules, on a regular basis.

Would be interesting, to hear opinions of experienced traders.