In trading terms, an “edge” refers to a consistent advantage that a trader has over the market, allowing them to make profitable trades over time. This advantage can come from various sources, such as a well-tested trading strategy, superior market analysis, or even psychological discipline. An edge is what differentiates successful traders from those who merely gamble in the market.
Having an edge doesn’t guarantee profit on every trade, but it does increase the likelihood of being profitable over a series of trades. Traders often spend considerable time and effort in developing and testing their edge, and it’s considered a crucial element for long-term success in trading.
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