Path To Peak Performance

Increasing Your Trading Edge

What Exactly is an Edge? And How Can You Secure an ‘Edge’ Over Other Traders?

First, let’s dive into the meaning of an edge. An edge is simply the advantage you hold over someone else. In basketball, for example, a 2-meter player has an edge over a 1.8-meter player thanks to his height. That’s his “edge.”

In trading, having an edge isn’t just important – it’s everything. Many beginner traders believe they’ll gain an edge through the strategies they use. But that’s a myth. Achieving an edge in the market requires much more than just a strategy.

Ever heard the phrase, “How you do one thing is how you do everything”? Burn this saying into your memory because it has the power to transform your entire trading career.

An edge in your trading strategy is only a small fraction of the edge you need. To develop a complete edge in trading, you must aim for PEAK PERFORMANCE in ALL areas of your life.

Example 1: Sleep Problems. This trader struggles with sleep – irregular hours, poor quality, constant fatigue. Because of this, he’s tired, unfocused, and emotionally volatile during trading. His decision-making suffers, as does his ability to control and even recognize his own emotions.

Example 2: Conflict with a Partner. This trader had a heated argument with his partner just before work. Now, he’s mentally distracted, angry, regretful. Throughout the day, his mind keeps returning to the fight, fueling frustration and resentment. He ends up trading from a place of anger and helplessness.

These are just two painfully realistic examples of issues that can kill a trader’s performance. And the danger here? These are precisely the areas most traders ignore. Instead, they obsess over refining their technical skills, forgetting that most of their growth lies within their own minds, in the places outside the market.

Homework

To sharpen your edge in the market, you need to elevate your performance in every area of your life. Remember what I said: how you do one thing is how you do everything. Fine-tune your sleep routine, eat clean, cut the junk from your diet, be a supportive partner, ditch the porn, and become aware of the positive and negative things you say to yourself each day. All of this will drastically enhance your mental state, which, in turn, will help you make better decisions in the heat of the trade. You’ll feel sharp, focused, and deserving of success, and soon, trading will start to feel like second nature.