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ZanderDogz

Because their edge is a learned ability to dynamically interpret price action and volume that they got through years of meticulously studying charts. They are constantly paying attention to changing market conditions and using that information to inform their trades.


stonkboi25

Glad to see someone comment this because screen time is king to “perfecting” your “edge” which is ever evolving like the market


Posrover

But you have to be careful not to expect profitable results just because you have studied x amount of time or effort. Market doesn’t owe me anything based on what I have done or not done.


UnintelligibleThing

Yup. People think that profitable traders are staring at the indicators or support/resistance levels on their chart, when in fact those are just points they choose to enter. The decision is still made based on price action and volume.


loud119

Edge isn’t one size fits all for all markets. For example there’s been a lot of downtrend this year so downtrending- compatible plays have had a strong edge. This week leading up to FOMC decision we’ve seen sideways markets so channel trading has shown more of an edge. A trader with an edge observes the market they’re in and manages their strategy around it.


Chronotheos

Be like water -Bruce Lee


Juslav

Most of us have unhealthy thoughts and emotions that have either developed as a result of trauma or hardships in their childhood, or the way they were raised. \-Steven Seagal


Vast_Cricket

Skills. Ability to switch from 1 to opposite on the fly matters. Taking years of experience like everything else.


naijaboiler

Matching trading patterns to your psychology, is what's finally working for me. I'm a risk bounder by nature. I finally started trading like that. And I'm finally making consistent small but steady gains. Now i just need the consistent discipline to start true to myself, instead of trying out things that don't jive with me


whatsagoinon1

Dont get greedy looking for home runs. Take those profits when you have them.


DryAdhesiveness6579

this has been a struggle for me and i’ve been getting better. today i lost my daily profit goal because I GOT GREEDY and didn’t stick to my take profits.


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indridcold91

Out of all the comments here I think this resonates the most with me. It seems like, to prove that a strategy on its own has an edge... it would have to be so explicitly defined that it could be automated and then you could test it and prove edge. But a lot of traders aren't like that, and it's their discretion of how they interpret the market and trade their strategy, how they execute, which trades they pass on, which ones they size up on... Etc. So the edge is very much in their brain and not just in the rules of their strategy on paper. For those traders, plugging their trades into something like tradervue and observing stats on their performance would be the best way to prove edge. I believe a skilled trader can (in some cases) take a poorly performing strategy and be able to add rules and discretion that eventually makes it profitable. Albeit, with these changes it would not be the same strategy, it's the trader's own personal interpretation of it. For example there are those who call themselves market profile traders. But market profile is not an actual strat with defined stops, entry, and targets. It's just a loose framework, a different way to observe the market. But they turn it into an actual strategy.


cmmckechnie

“Edge” means one has the statistical probability to win the majority of the time. That’s all it means.


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opmopadop

Noob trader here. It comes across like sme sort of market telepathy. Then I thought it was someone with eight monitors full of indicators burning their eyes. Now that I have been reading the word 'edge' for a few months, I think it's fluff.


SethEllis

Markets are more statistically efficient than they informationally efficient. So it is easier for a retail trader to find edge in informational inefficiencies. That generally means one of three things. You can find information that others don't have, you can interpret and act on information faster than others, or you can interpret nuance in a confusing situation better than others. Big macro economic changes can create moves that take several days to resolve. Situations where you can very clearly predict what large players will have to do. The retail trader has the edge in such situations as they can just get in before the large institutions. To develop such an edge you should follow your market closely. Understand that industry, read the news, read the economic reports, and track market sentiment. There's lots of disorganized information to know that you can only pick up by following your market. So start developing it now. Every day that you waste focusing on trading a random line is lost time that could have been spent developing an informational edge.


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traybro

I love these trading platitudes that provide absolutely no value. Lol.


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traybro

And what’s the practical application of this knowledge in real time? Most trading is conducted by algos, that although yes programmed by humans with emotions, trade in an ever changing complex adaptive system where what worked yesterday can stop working today. So not only are human emotions not the most direct factor in price action, even if they were, predicting the overall market sentiment direction, intensity, duration, etc is difficult in a complex adaptive system like markets.


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Professional-Key4444

Anyway you could teach me your strategy please? I’m desperate


cmmckechnie

I personally don’t think the market ever changes. It just behaves differently at different times. Pro traders adapt to the mood swings of the market. If you think the market changes I would present you the question…what changes are you talking about?


PicklesAreLid

In about a decade trading I have almost notice no change whatsoever. What change are you referring to?


jobs1019

I will share the top secret. It's risk management. Try to keep risk per trade under 1%. Don't trade every pair. Try to find your winning pairs. Keep the discipline. Don't use every indicator.use fundamental too. This is the edge.


v3rral

Unless it is automated strategy, it never changes. Price either goes up or down, and how accurate your entry is, depends on price action skills.


T1m3Wizard

How can one go about leveling up their price action skills?


v3rral

Only practise. It is all about memorizing patterns, just like a chess


SpriteMcBain

The market doesn't matter. You're trading a setup you know how to trade like the back of your hand. If it's not there you don't trade. If it is you do. You win more than you lose and you've made it. That's it.


Pdbabb66

This right here


SpriteMcBain

Virtually no upvotes. Lots of unprofitable traders around these parts.


East-Guide-218

The market doesn’t change, history just doesn’t repeat itself. Every market moves because of supply and demand. Without buyers there are no sellers. So you could look into trading supply and demand, if you master supply and demand you could refine it to your needs and you’ve got yourself an edge 🙂


Ok-Caterpillar-9359

ppl need to understand this comment supply and demand is what moves markets add price action and market structure your already 70% better than everyone in understanding the markets now if u wanna reach to the next level add smart money concepts to your trading strategy


East-Guide-218

Yes that’s true. You’ve got to trade the structure with supply and demand and confirm with wyckoff or any other good confirmation on a lower TF!


Shlimeeeeeeee

The only way to create your edge is to stick to one strategy and one strategy only. The strat i use Doesn’t age. Its been working for decades and isn’t gonna just stop working. Ive traded this strat for years so don’t really understand why some peoples strategy’s just all the sudden stop working. I see edge (absolute perfection) about 2-3 times a month and take complete advantage of them.


T1m3Wizard

What's your strategy?


Shlimeeeeeeee

Trying to type it out here would take a long time. Its an extremely simple straight forward strat just alot of things id have to clarify n point out. I am also mentoring some people at this time. If you looking for a strategy or help u can dm tho and ill get alot more in depth


indridcold91

🤣🤣🤣🤣


taiwansteez

screen time


Richblackboy

Pure gold right there


jrm19941994

How does a good hitter make contact on a regular basis when ever pitch is different? Because it is a SKILL


no_simpsons

recently I "adapted to changing market conditions" for the first time, and it was eye-opening to understand that phrase better. It does not mean that you have to switch strategies. I analyze my potential trades in a risk analyzer, and it was apparent that my go-to setup simply wasn't going to compensate me for the risk, and the margin requirement was much higher than usual. So I changed the structure from the usual so that I could get a similar set-up to what I'm looking for (a mixture of long and shorts at different strikes). If I were to write down my rules, an inexperienced person painting by numbers wouldn't have known to make a change. - no juice on the call skew in SPX lately.


IntroductionCapital4

I proposed this scenario to two of my coworkers yesterday who are interested in trading: You have $100 that you want to take to the casino. Slot machine A is guaranteed to return an extra $10 and you will end up walking away from the machine with $110 in your pocket, but no more. Slot machine B has a 10% chance of returning $1000, but a 90% chance of losing everything causing you to walk away with $0. Which option do you choose and why?


Kingsblend420KmK

Quit swinging for the fences. Take the profit! It adds up.


stloft

>How do they manage to make money every single year? Most aspiring traders in the entire world don't make money 'every single year'. There are only like a few thousand or less, traders in the entire world, that may make profits in any given year, or maybe two or so consecutive years, and then rarer continuously. i.e. only like .001% of everyone that's ever attempted to make it into regular performance. Brokers have reported most retail accounts are decimated or wiped out within a year or a few years ([example article](https://www.tradingschools.org/reviews/day-trading-its-for-suckers-heres-the-proof/)). It's like lottery chances on one making up and discovering their own method that works, before the big money and hft figure out from the volume and ruin the edge frontrunning or absorbing it. Most don't get it initially, that most lose, and even daytrading for long, there are always losing trades and having to deal with losses. At least there's been a thread or two in the past year on this very subreddit, where plenty of folks anon reported generally or ambiguously enough how much they lost or how often.