An edge is an advantage that a trader has over his competitors, allowing him to generate and retain profits from other traders . There can be many types of trading edges through risk management, psychological management, and through better trading methods.
Top 8 ways to trade with an advantage
- Trade only the best set ups, trends, and stocks. Waiting for the right time to take the take that meets his trading plan.
- By using correct position size that alone can put you in the top 10% of traders simply by not blowing out your account and staying in the game by maximizing winners and minimizing losers.Here is the link that we recommend
- Not to risk more than 1% of you capital gives the opportunity to have bigger winners than losers in the long run which is needed to be profitable. Risking $1 to gain $3 is an edge over those that risk $3 to make $1.
- Always trade in the direction of the trend.
- Don’t do betting just follow your trading plan that gives you an edge over those that trade based on fear and greed.
- Speaking of trading plans, also those that actually have a plan on how to trade and what to trade they have an advantage over those that trade based on just opinions.
- Knowing who you are as a trader and picking your defined method gives you an advantage over those that float from method to method throwing away money in losses.
- A trader that trades a robust system that fits his/her personality has a huge advantage over those that can not handle the stress and strain of a system.