Success Trading Forex With The Edge

Successful traders who have demonstrated longevity in this business have one thing in common: a consistent methodology with a demonstrable edge. You cannot trade profitably over the long run without an edge.

What is your edge?

How are you going to have an advantage over everyone else?… Your edge will come from followinga methodology that has a proven, quantifiable positive expectation. Your edge will come from recognizing the type of market environment that favors your particular methodology. Your edge also comes from avoiding certain market environments that you know are not suitable to your trading style or skills.

You must know what works and doesn’t work for you. Your edge is in your ability to quickly admit when you are wrong and revise your game plan. You may also have an individual edge such as having fast reflexes, exceptional execution skills, or perhaps an ability to recognize and react right away to a trade that isn’t working.

To KEEP your edge, be prepared in all ways for each trading day. Lastly, you must BELIEVE that you have an edge. This belief comes from doing your own research and preparation. It is this belief that will motivate you to achieve superior performance.

There is no such thing as a wrong methodology if it can be proven to have an edge over time.

Once you can apply a trading process consistently, your profitability will all come down to simply executing trades. You won’t make money if you don’t pull the trigger. Confidence is what will keep you consistently placing the proper trades on a regular basis. Confidence comes from doing your own research, staying involved in the process and taking each moment one at a time, observing a pattern repeat itself numerous times, and gaining experience in execution and organizational skills.

If you pick one style and stick with it, you will not only gain confidence in that style, but you will begin to learn its subtle nuances (giving you a further edge). If you continually trade with an edge, you will make money. Stick with one methodology and take all the trades.

To summarize the key points:

• Develop a consistent framework for following the market’s action.
• Develop your own process (routines, rituals, research) to take advantage of the price action within this framework.
• Believe in your process.
• Trades made must come from this process, rather than “randomly.”
• Stay involved in the process and emotionally detached from the outcome.