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The wide ranging subject of what is a trading edge and how you can use it to profit when trading markets, is one of the most actively discussed subjects, on many FX trading forums. A trading edge can be defined in many ways, in simple terms it’s a repeating pattern of market behaviour, which you identify, that you can take advantage of, in order to profit. A highly revered publication, Investopedia, defines a trading edge as: a technique, observation or approach, that creates a cash advantage over other market players. It doesn’t have to be elaborate to fulfil its purpose; anything that adds a few points to the winning side of an equation, can build an edge that lasts a lifetime.
A common mistake, which traders of all levels of experience make, is to imagine an edge always happens; day after day, week after week. Or that it’s a bullet proof, 100% method, to always profit from. They also make the mistake of surmising that; whenever the pattern of market behaviour occurs, they’ll a...
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