Often times you’ll hear traders discuss edge, but what is it really they’re talking about? Edge is defined as an advantage you have in the markets of free stock trading. It’s not something intangible, it’s something that can be clearly explained.
For example, some traders are very good at deciphering breaking headline news and are able to trade and profit off that. Their edge lies in making good decisions quickly.
What’s your edge?
For the most part, if you’re relatively new to trading you’re still trying to find an edge. Be assured that there are several strategies and methods used to generate alpha 
from the markets. What works for me might not work for you and vice versa. However, one thing is for sure, successful traders can tell you exactly where their edge lies in the markets. It’s crystal clear to them on multiple levels with free stock trading.
Before entering a trade, they can tell you why they like the idea, their risk vs. reward, and why they believe it has a strong likelihood of success. Now, if you don’t know why you’re in a trade, can clearly outline what your exits are of you’re wrong and what your target is, you’re most likely not trading with an edge.
And you know what?
If you’re not free stock trading with an edge you’re simply gambling and hoping things work out. That’s just a recipe for failure in the long run.
How do you know if you have edge with free stock trading?
Well, you should categorize your trades. For example, let’s say you like to buy or sell stocks based on technical patterns. You can group those trades as technical and then track their performance. On the other hand, let’s say you like to also trade stocks based on rumors, then you might create another group called rumors. By grouping your trades you can identify which is working best by profits and losses.
Now, if you have no clue on how to find a strategy, you should try to find someone who is willing to mentor you. The stock market is very complicated and going 
through the trial and error process can be very expensive. If you don’t know someone who can help, consider signing up to an idea generating service or even free stock trading room.
At this stage in the game you’re just trying to learn what makes money in the markets, paying for a service can be a lot less expensive than trying to figure things out on your own. With that said, any service you do sign up for, paper trade it first and try to learn the methodology before pouring your hard earned money into the markets.
The reality is that edges in the market disappear.
The more people in on it, the smaller and smaller the gains will become due to competition. Ultimately, you’ll have to create your own variation or tweak something that you’ve seen work.
Edge in trading is not a one size fits all proposition. There is a ton of good stuff out there, but remember, most traders in the market end up losing, so if you find yourself doing the same ol’ thing everyone else is doing, then don’t be surprised of the outcome when doing free stock trading.
