Do You Have One?

Last month I released the clip below…. the contact I’ve had since has left me quite shocked.

I seem to have made a rookie error – assumption.

I released the clip after seen a few comments on-line where others weren’t aware of a specific edge…

After releasing the clip I had a whole bunch of emails from viewers that didn’t really understand this concept of an ‘edge’ inside the markets. It seems they knew of edges that exist outside of the markets, although not in the market behaviour.

Edges…

So just to be crystal clear, my definition of an edge is;

“An edge within the markets is something unique that contributes towards the market behaviour in such a way I know I have an above average chance of winning should I participate”

So for example, various individuals within the horse racing world have a significant edge over the market when they run a horse in a handicap race where they know the handicap mark the horse has been allotted doesn’t reflect the horses ability.

For me that’s great. As it’s not all that hard to see when a horse is being significantly supported.

If that should happen, when I suspect such a situation is on the cards… I now have a good reason to believe the price will shorten, or at least remain the same. Their edge has become my edge… make sense right?

If you’re not quite sure, check out the clip…

P.S. Sorry for standing up half way through, I realise you can’t un-see that!

Building up a selection of ‘edges’ within the market is a great way to give yourself a consistent chance of winning.

If you then combine that with the right execution plan (blogged about previously) then you have a great chance of making the markets pay… hopefully that was helpful!

Related: Trading Guide