Mar 15, 2016

A Unique Trading Edge

"The successful market participants I know have spent a great deal of effort thinking about–and researching–a unique approach to trading and investing that captures an enduring bias in the market place."

​There are a few very important concepts here. 

1- Spending effort thinking about a unique approach
2- Research that unique approach and refine into a tradable strategy
3- Focus that effort into finding an enduring bias in the current market place

You should use these guidelines to find a suitable trading edge. Ask yourself questions. Go look for the answers. 

Another key point here is the word "Bias". From the dictionary,

Statistics. a systematic as opposed to a random distortion of astatistic as a result of sampling procedure.

a particular tendency, trend, inclination, feeling, or opinion

So, in other words a bias is also a definition of an edge. A trading edge does not work all the time. It is really a tendency for the market to behave in a certain way in a particular condition. If these conditions are met, the market tends to... That is an edge.

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