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The One Simple Trick It Takes To Get An Edge in the Market

Yet there's one question so many have trouble answering...

If everyone has access to the same information, how is it possible to get any kind of edge in the markets?

This especially holds true with technical analysis. After all, everyone is looking at the same moving averages, trendlines, and price patterns.

How can the difference between winners and losers be so big when everyone is looking at the same charts?

There is something to be said about your own psychology around risk and how you execute on your trades...

But I'm going to show you how a simple shift in your mindset can completely change how you approach the market and drastically increase your performance.

First, let's stop by the poker table.

cards

The Cards On The Table

Say you are playing a game of poker against 7 other people.

Specifically, Texas Hold'em

What information helps you make a decision?

Well, you've got the cards in your hand.

And you've got the cards on the table.

Everything else is hidden from you until all the bets are done.

And you know what? You could calculate your odds of success based on the cards on the table and the cards in your hand.

But that wouldn't make you successful.

The Mindset Shift

There's so much more going on at this poker table that can give you an edge.

What's the chip count of each of the players?

Who has a small stack and about to go on tilt, and who has a big stack that has all the time in the world?

How much has each player had to drink? Is anyone drunk enough to make stupid bets?

How long has each player been at the table? Who is looking fatigued?

Does anyone have a tell? Are they bluffing on their bets? Are they trying to slow play you until the river card?

And then you can go into your own thoughts. Are you stressed about this hand? Do other people think you're stressed about this?

There's a lot more going on, isn't there?

If all you do is focus on the cards on the table and the cards in your hand, you're going to be at a significant disadvantage.

Being successful is not about playing the cards, it's about playing the players.

How To Change Your Mindset in the Markets

Just like Texas Hold'em, everyone sees the cards on the table.

But with investing and trading, some information goes out the window.

You don't know who you're trading against, you don't know their "chip count," you don't know what kind of positioning they are coming from.

Yet, you can feel it in the markets.

In many instances, you can quantify it through technical analysis.

80% of my technical analysis is not based on the charts I see, but on how I think other people are positioned into the trade.

Where are the pain points on the chart?

Who owns this stock?

At what price will most people get stopped out or forced into the trade?

What is the overall positioning of participants and at what prices?

What new information are they waiting for to make a decision?

Being a successful trader is not about looking at lines on a chart... it's about playing the other players.

That's why there is a huge gap between winners and losers.

Get Clarity in the Markets

If you change your mindset and how you approach the market, you'll start to see things differently.

You'll realize it's not about how this moving average will support price, it's how you know it's high odds institutional buyers will step up.

You'll realize it's not about shorting a breakdown, it's how you know that there's a bunch of investors that are about to see their position go from green to red.

You'll realize it's not about chasing an earnings gap, it's how large players are being forced to chase as well and you can get in and out faster than them.

Change your mindset, change your approach, and see your performance drastically improve.

by Steven Place

Steven Place is the founder and head trader at investingwithoptions.com/