Trading edge

Couple of traders had been asking why some traders are doing far better than them?  They were all taught the same theories and execution of trade, but the results were very much different.  Some even query whether that those who have done well have a certain trading edge above the others where they don't want to share.  "Why are scores different when a class of students were taught by the same  teacher?  Does that means that those students who did well have a cutting edge on learning compared to others?  NO! NO! NO!"  My husband exclaimed. 
So, what contribute to the edge where some traders are doing better than others?  According to my observation, I would say there are the 3Ps that contribute the differences.  There are:

1. Physical stage
2. Psychological stage
3. Preparation stage        

  
Physical stage

This is the stage to test on the trader's physical condition.  What do I mean by that?  Just imagine to sit in front of the a computer screen for hours to enter a trade position, what will happen?  Most traders will either fall asleep, surfing internet, playing computer games, reading books or going for a long break, etc.  But the most worrying situation is that most traders will make wrong decision after the long STARING on the screen as their body and mind are telling them "I'm tired!  Let's get it done and get over with it for the day QUICK!"  That is common experience I believe most of us had.  In order not to wear out ourselves, do bear in mind that there is always TIME where markets are more volatile.  Knowing different time to trade will help to reduce the unnecessary waiting time.

Psychological stage

With physical tiredness, trader tend to make mistake psychologically.  As mention early, traders has the tendency to rush into a trade and hopefully they can end with quick profits.  
Another scenario would be when traders see a sudden move in price range, they tend to jump into a trade and get themselves SCARED when price suddenly retrace upon their entry.  Understand that nobody want to miss any opportunity to profit from trading, but there are methods to calculate risks and entry level.  But most have forgotten the basic trading rules at this point of time.
The psychological impact on the rush hour make a lot of traders behave irrationally.  Looking at long term prospect of trading a trend rather than trying to scalp it quick will benefit more in monetary terms.  Therefore, learn to ignore the temptation on sudden movement of price.  Keep a clear mind and stick to the rules!

Preparation stage 

I must say that most traders rather look at the charts and hope that they are lucky enough to catch a trend once they on their laptop or desktop.  A successful trader don't make profit by LUCK!  They are prepared!  They do their research to understand the market of the day, what are the time to get ready, which country are closed for trading due to holiday, calculation of support and resistance for the day, week or month, etc.  To them, they don't count on LUCK!  The definition of luck to them are just happen to earn more than what they are expecting for.  

That's why there are saying why 80% of traders lost in the game of trading.  There ain't any edge in any trading, but there are an edge for success if you stick to the rules strictly.  For any technical trading information, please visit http://forexoceanview.blogspot.com/ for tips on trading technically.