The Ultimate Trading Edge: Time

Filed under: Learn Forex Trading |

With experience, you will come to learn that your most valuable trading edge is not this combination of indicators or those combinations of parameters, but it is much more simple than any of those. It is in fact time itself.


The way that professional forex traders make their money is by first trading high probability setups such as price action signals at significant areas of support/resistance; and then by letting their edge play out over a long series of trades. It does not matter how high probability your trades are – in the short term, you can always lose money. That is the very nature of the market. Anything unexpected can happen in the short term, and as such, any one single trade made on its own has to be regarded as gambling. However, over a long series of a few hundred or even a thousand trades, any trading edge will come to fruition and you will be profitable if this edge remains present in the market. This is not unlike the world of professional sports betters.


Professional sports gamblers find an edge in the market and then exploit that edge over a long series of bets so that they come out on top. They use strict rules of money management and place a large emphasis on value bets (i.e. bets that have longer odds than they deem that they should have). This is very similar to the world of professional forex trading. Strict rules of money management are adhered to and value trades might be regarded as those that are in line with a strong trend.


So remember, time is your ultimately commodity in the world of forex trading – so don’t be in a hurry and don’t try to take trades that are not really there. Stick to your game plan, and in the long haul, you will come out on top.


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