You may decide if it's worthwhile to spend your time looking for an edge or whether it's even attainable or useful by discovering what it really means.
The Common Thought
Most people believe that an advantage is something a trader has over the market or all other traders that they are aware of or use. For instance, a trader may believe that using a certain indicator, such as the Relative Strength Index (RSI), in a particular way (such as placing short trades when the RSI is over 84), offers them a competitive edge over traders who do not use the same indicator in the same way.
Many novice traders experiment with several indicators or indicator settings for years (like a length of 10, then a length of 15, etc.). To identify the combination that provides them an advantage, they also experiment with various chart settings, such as time-based charts, tick-based charts, or volume-based charts.
Getting Your Way
Some traders are unfamiliar with the concept of "edge." When they do, they could begin to question if they already possess an edge or if they still need to obtain one. If there are any trading edges, following a few rules can assist traders locate them:
The edge must be grounded on fact; it cannot be based on conjecture. A trader must be aware that an edge could not always be effective. With an advantage, it is possible to profit greatly, but after a while, the edge may lose its effectiveness.
If you believe you have an advantage, you should put it to the test by laying out the rules in detail and then putting them to use on historical market data and "paper trading."
An alarm clock
There are traders who genuinely believe they have an advantage and traders who believe they require an advantage. Some traders chuckle whenever someone mentions an edge while they execute another profitable move. In other words, you may or may not identify and take use of a benefit.
Many traders believe that having solid education and training gives them a competitive advantage