Let’s flip a coin…<\/p>\n
If it lands on heads, then I win $1. Tails, you win $1.<\/p>\n
That’s a fair bet. We both have a 50% chance of winning.<\/p>\n
And if we play 100 flips, you’d expect to walk away with $50. But I don’t like to play fair…<\/p>\n
What if we flipped a special coin that would land on heads more than half the time? Or how about instead of getting $1, I’d get $2 for every winning flip of the coin?<\/p>\n
If I came to you with these proposals, you’d rightfully tell me to get lost. This is a simple example of how most people would assess and manage risk.<\/p>\n
But things can get complicated quickly…<\/p>\n
What if you came back to me with a counteroffer? Let’s say we’d flip a special coin where I’d have a 60% chance of winning every flip.<\/p>\n
But in exchange, you would win $2 every time the coin lands on tails. Now it’s much less clear who has the upper hand.<\/p>\n
But this is just a coin flip game… Trading the markets is more complicated. And it’s no wonder traders have so much trouble being profitable.<\/p>\n
That’s why today, we’re going to continue the conversation around having an edge in your trading<\/a>…<\/p>\n First, I’m going to share a simple formula that’s going to tell you whether you have an edge or not…<\/p>\nHow To Calculate Your Trading Edge<\/h2>\n