With the market is on a tight bearish range, finding an edge in the market is hard to find or impossible to look for. That's how the market right now especially with so many unpredictable news that is coming from Europe. Lots of traders are having a hard time coping with the extreme volatility that the market projects daily.
But the edge right now is to stay on the sidelines until the market stabilizes. Unless traders don't know their edge, you don't really have an edge at all.
An "edge" in trading lingo is sometimes or most of the time is being misinterpreted (mostly) by newer traders. As they say in trading, if you don't know your edge, you don't have one or none at all.
An edge in trading has lots of meaning. A few of them is how you trade, what instrument will you trade, how far you understand how the market works, how much capital are you going to trade, how you implement your trading knowledge, how you trade your plan (if you have a plan), how do you place your stops, how do you find a good location to put a trade, how much indicators are you going to use and how are you going to relate them, how you read the markets and what timeframe are you going to trade, and a lot more. These are just a few of the items I mentioned.
One edge that you need is to read trading and investing books and learn more about the markets in real time. Spend years reading while building your capital, in that way you can have some kind of idea how you approach the market.
Rational thinking is also important in trading and or investing. If you are not used to losing amount of money and don't have any patience in learning and getting knowledge about the market, it's impossible or it may be hard to get involve in the market.
Passion in the market is also an important factor as a trader. Love what you do. If you don't love what you do, even in real life, if you are not passionate about in what you are doing, success is not possible or it will be hard to accomplish.
Most great traders and investors love what they do, they eat...breath...and sleep...in the the market. It's like an obsession to them. It's their job. They treat trading as a business to pay their bills.
But once you learn how the market works, the rewards are astronomical. But few are succeeding in the market because of lack discipline, don't know "their self", don't know their edge, they trade without a plan or don't have any idea at all.
Trading is about having your own understanding about the markets, one idea is all you need, master it and you're on your way.
