|

No edge will last forever

Play the podcast:

The definition of ‘edge’ in the world of trading implies that it is a tool that exists to drive your trading performance. The sharper your edge, the more optimal you are, the blunter your edge, the more things start to fall apart.

But ‘edge’ can be associated with many aspects of your trading.

Commonly the traders we coach look at something physical that they call their edge, but in reality, their true edge comes from somewhere much deeper than that. We like to see edge as a combination of many small factors which compound to become a large, though not easily defined, factor.

We need to look at sub sections of our edge as a portfolio of factors and the need to look to sharpen up specific factors, and by thus by extension, the whole.

Edge can be separated into multiple factors. For example, edge can take the shape of: -

  • Education foundation.

  • Product knowledge.

  • Market’s experience.

  • Quality of mentoring

  • Openness to new experiences.

  • Trading methodology.

  • Strategy development.

  • Entry technique.

  • Exit technique.

  • Process to ‘let go’.

  • Process itself.

  • Speed to market.

  • Technology.

  • Self-management.

  • Life balance.

  • Social connectivity.

  • Mental state.

  • Honesty.

All of these can work for you or against you. So edge is something we need to add to our awareness radar.

There are times when we may kid ourselves into believing we have an edge, but in reality, it doesn’t exist. Traders have to have an honesty around owning up to their weaknesses and then owning the process of strengthening them.

Our collective edge is thus variable and with the right coaching refinable. Keeping honest with yourself is thus important.

In this podcast, our guest, Ryan Paisey talks with us about these multiple edges and the need to be agile in switching from product to product and at times from role to role.

Ryan has been a market-maker, a day trader, a scalper and a prop trader These days he devotes his energy to providing a trader news service ‘PriapusIQ’, which he describes as All Killer, No Filler, News & Commentary on all Things Markets & Geopolitics.

As you will hear in this vibrant chat, Ryan doesn’t hold back on his views. Ryan is driven by a desire to provide traders with an edge by having the sort of slant on news and information which they fail to get from standard news services. With barriers to entry so low, many traders come into trading unprepared, or with unrealistic expectations and then have to fend for themselves.

Author

The AlphaMind Project

The AlphaMind Project

The AlphaMind Project Ltd

The AlphaMind Project has been co-founded by Steven Goldstein and Mark Randall to become a leader in the delivery of trader coaching, mentoring and trader focussed education.

More from The AlphaMind Project
Share:

Editor's Picks

Zcash Price Forecast: ZEC poised for a rebound as momentum recovers

Zcash is up 4% on Wednesday, extending the 4% rise from the previous day and paring Monday’s 8% loss. Grayscale’s ZEC-focused Exchange-Traded Fund is facing selling pressure, with over $5 million in outflows on Tuesday. The technical outlook for ZEC is now mixed, with a bearish bias as upside momentum gains strength.

Top 3 Price Predictions: BTC eyes $85,000, ETH holds support, XRP stabilizes

Bitcoin, Ethereum, and Ripple show signs of recovery on Wednesday as buyers try to regain control after their recent market weakness. BTC extends its rebound toward the $85,000 resistance, while ETH and XRP find support around key levels.

Strategy (MSTR) bitcoin buying model faces scrutiny as STRC costs climb

Strategy’s STRC financing strategy increased its Bitcoin holdings in H1, but made its capital structure more expensive, prompting an examination of its effectiveness, according to a Tuesday report by K33. STRC recovered close to its $100 par value, closing at $99.90 after an extended period of heavy buybacks.

Bitcoin pressured by rising yields as equities draw strength from earnings expectations

Bitcoin is seeing a TradFi capital exodus as rising US Treasury yields weigh on digital assets, while equities draw strength from expectations of strong corporate earnings, according to Wintermute. The loss came as Bitcoin fell 3.2% last week, while Ethereum declined 7.0% and altcoins dropped 2.9%.

Bitcoin: Uptober or Rektober?
Bitcoin (BTC) price is down over 4% so far this week, trading below $83,000 at the time of writing on Friday as mounting selling pressure threatens to derail the seasonal “Uptober” rally. Profit-taking, a surge in long liquidations and weakening demand from institutional investors are weighing on BTC.