Shift

Recently, a fundamental shift occurred in my concept of what comprised an edge. My approach to finding opportunities began to rely more on the situational logic of any given moment, and less upon blanket, "incidental" setups. In other words, instead of just scanning the market passively and waiting for some pre-defined "pattern match" for a point of execution, any opportunity would now have its basis upon my understanding of the present (read: unique) impetus for market movement, and an accurate anticipation of where/when the next source of demand or supply would come from. Changes in market psychology would now comprise the elements of the setup-pattern, rather than just their visual manifestations on the charts, which are often a step or two behind in providing an entry point. The most glaring difference in the before/after would be the primacy of context over any rigid, abstract interpretation of market action; pattern XYZ might denote a "buy" today, but could just as easily convey a "sell" tomorrow.

Putting discretion at the forefront of my trading was no easy task, but was a necessary move considering the markets I trade. Any "rinse and repeat" setup can only last so long before it disappears beneath a glut of competitive forces. But this shift was not only a way to sharpen my edge or deepen my understanding of the markets; in my opinion, it was an indispensable step for achieving longevity as a trader. I promised myself I would never repeat the mistake of letting the markets outdate me, and this is the first step to ensuring my edge always remains sharp.