Rookie Error (Sorry) – Edge’s Are Why We Do This…

Posted on Posted in Psychology, Video Posts

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

2 thoughts on “Rookie Error (Sorry) – Edge’s Are Why We Do This…

  1. Good morning and Merry Christmas too all, I have just read this post about having a edge and I also watched the video too. I’m new to trading and been dabbling for the last month or so, I’m not having a dig or a go at anybody but it’s so obvious to me that having a edge, so instead of a 50/50 chance you change it to 85/35 percent chance of winning your going to come out top in the end. I’m not expert but I’m getting good at spotting when the market reverses, I don’t get it right every time but seem to do it 7 times out of 10 taking between 2-5 ticks a trade and on the other 3 break even or a small loss, so for me this is my edge at the moment.
    Some people will disagree on how about I trade as I’m solely using price action ( watching the charts) checking the over round and generally watching the prices fight one another, so as one or two runners are going out the favourite or another horse comes in… It’s very basic trading for me but I’m learning, a live race feed would be great and help loads for sure, but to be honest I can’t afford this yet. Like I said I’m new and this post will probably get shot down on how to do trading, but for the moment this seems to be my edge!!!

  2. Hi Caan,

    Sound advice thanks, nice boxers btw. You mentioned a few books in the video, I’m wondering would you have a shortlist of books for a wannabe trader that you think might help me?

    Many thanks,
    Micheal

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