Live during the edge, not on the edge

 One of the most important concepts I have come to realize is the importance of trading while your edge is active. Honing an awareness of this and honoring these time periods (meaning deciding to trade only when the edge is on) could mean the difference between an upward sloping PnL curve and one that's, well...not. Identifying these "edge-filled zones" could be something as simple as recognizing certain time periods of the trading day/week/month (as some swing traders look for 2-3 major opportunities a year!) in which one's trading has positive expectancy, or something more nuanced like mapping certain market regimes to one's preferred trading style. An example of the latter could be post-news price action, post-earnings periods, or parabolic runners that are about to mean revert.

Obviously, the above is not a simple subject and could be the topic of a lengthy discussion. But regardless of what edge one ultimately identifies and decides to trade, the common denominator is actively trading -- and equally as importantly--actively not trading, depending on whether market conditions are conducive to one's edge. It can be mighty tempting or FOMO-inducing to see large moves take place without you in periods of what amounts to random market action, but you absolutely need to remind yourself that entering a position in this type of environment can negate all the forward progress you've made during more optimal times. Trading is hard enough as it is. Even with positive expectancy, one is bound to lose every now an then. Why make life harder by placing random trades that don't scale across many trading sessions? You know how it goes - one big drawdown will lead to revenge trading, further negating any consistently positive PnL you worked hard to obtain during more optimal times. 

I've found that good traders often face this issue, often because they are "challenging" themselves to take things to another level. If you fall into this category, consider taking on a different type of challenge. Instead of fighting tricky markets, fight your urge to do so and instead fight he battle of discipline and consistency. This rather mundane, boring, but difficult task, is what can turn a good trader into a great trader. Opportunities open up to those that aren't bogged down with nonsensical traps (which seem obvious and totally avoidable in retrospect). Your future self will thank you for choosing to live during the edge instead of on the edge.