HOW DO I GAIN A TRADING EDGE?

Unless you are a professional trader working in a large financial institution with a wealth of funds at your disposal and a team of talented analysts with a lot of know-how and cutting edge technology helping your every move, you are very much on your own facing the weight of the corporate world who are trying to wring every dollar they can out of you. In order to face and overcome these pressures you have to find a trading edge to survive the forex jungle.

Having a trading edge will allow you to avoid the tricks and traps of institutional investors, and it will also allow you to get the best out of your forex trading strategy and abilities. It will also prevent you from being imprisoned by your own emotions. A trading edge demands that you be both analytical and discretionary and always strives to make decisions with logic and consistency. Once you have acquired a trading edge your trading life will become so much easier because you will have the confidence, not overconfidence, that most of your trades will be profitable.

So What Do You Have To Do To Attain A Trading Edge?

Firstly, don’t follow the lead of others and go into chat rooms, you will get information overload and too much advice. Try to work things out for yourself, because you are more likely to learn better that way. If you get it wrong, and you will some of the time, don’t blame everyone else and the systems you are using. Accept your failure and work out how to recover from it.

Don’t complicate things and try to automate everything. Keep things simple and stay with the basic rules and tools you are used to. This way you can analyze your errors and learning from them, you can expand your rules and disciplines to improve your skills. Record the events that get your attention. Analyze them and see how they relate to chart patterns. Ask yourself if this has happened before? What did you do the last time it happened? Did you gain or did you lose? These discoveries will provide you with more tools to gain a trading edge.

Finally, be aggressive in allocating your time to increasing your profits on good trades and reducing your losses on bad trades. If you do this you will gain a trading edge over your competition.