Is trading really any different from going to the casino or buying a lottery ticket?<\/p>\n
As a trading coach, this is one of the most common questions I get from beginners.<\/p>\n
And my answer, over the last 10 years, has always been the same. It depends<\/em>.<\/p>\n Fundamentally, I don’t see trading as any different from gambling.<\/p>\n But there are professional gamblers and there are amateur gamblers.<\/p>\n The pros are the ones who make a living from gambling. Amateurs might get lucky every once in a while, but they’re generally the ones losing more money than they’re making.<\/p>\n Funnily enough, it’s the exact same thing with the financial markets and traders.<\/p>\n But there’s one cool thing about trading. Whether you’re a long-term winner or loser is a choice, it’s entirely up to you – and to you alone – which camp you want to be in.<\/p>\n Of course, everyone will tell you they want to be a winning trader. But the unfortunate truth is that not everyone is willing to put in the time and the work it takes to become a winning trader.<\/p>\n Over the next few days, I’ll leave you with my personal roadmap to become the kind of trader you want to be.<\/p>\n It’s my firm belief that just about anyone can consistently make money from the markets if they have the following things…<\/p>\n Today we’re going to focus on the importance of having a defined edge. Your edge as a trader is an advantage you can clearly identify that is likely to result in a winning outcome.<\/p>\n For example, your edge could be as simple as a specific chart pattern you know inside and out.<\/p>\n And if the market isn’t setting up according to that chart pattern, then your edge isn’t there. Which in turn means you shouldn’t be trading.<\/p>\n But once you see that chart pattern, then your edge is present, and you can trade.<\/p>\n This is where the difference between a pro and an amateur should start becoming very clear.<\/p>\n A pro will only trade when and if their edge is present. If their edge isn’t there, they can’t trade.<\/p>\n And yes, sometimes that means the pro is going to miss out on a big move. Just like how sometimes an amateur will leave the casino having won a jackpot.<\/p>\n The difference is the pro isn’t relying on luck to make their money, while the amateur is.<\/p>\n It’s why there isn’t a single professional trader I know that’s currently getting involved with GameStop, while plenty of amateurs are.<\/p>\n The amateur traders are hoping to hit the jackpot… the pros are steering clear because they can’t see an edge that tips the odds in their favor.<\/p>\nFinding a Pattern Gives You an Edge<\/h2>\n
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