How to Define Your Trading Edge

Ok, so let’s talk about goals.

Now I think goal setting is great…
Vision boards, targets, lists. All fine. They can work brilliantly.

But trading has a specific problem that can make traditional goal-setting tricky.

Most traders write long lists of things they want to achieve.

• More profit.
• More consistency.
• Better discipline.

Like a shopping list…

And the issue with a wish list is that in the heat of the moment, your chimp brain doesn’t really know what to do with it.

“Make more money” sounds good, that’s why we’re all here after all…

But when pressure is on, the chimp brain hears that and says,

“Well then, I should take this trade to make me some more money”

And suddenly you’re FOMO-ing into a trade you didn’t really want to take.

To your chimp brain, patience does not feel like progress.
There’s confusion between your actions and where you are actually headed.

A better way to think about this is to define your heading.

Your North Star.
Not a P&L number or a win rate.
But a clear direction you’re moving in, no matter what.

Like heading north.

• You might walk.
• You might run.
• You might even swim for a bit.

But the direction stays the same.
Relentless pursuit of a single direction, so all your energy keeps you moving forward rather than spinning you round in circles.

So what could that look like in trading?

It might be doubling down on something that’s already working.
That’s usually the lowest-hanging fruit.

Or it might be spending the first part of the year figuring out where your edge actually is.

That’s fine too.

It also means deciding what to ignore, not just what to focus on.

For example:

“I’m becoming a great opening range breakout trader.”
“I’m becoming a great one to three-day swing trader.”
“I’m becoming a great earnings trader.”
“I’m becoming very good at trading range-bound days.”

Whatever it is, you’re building an identity, a north star…

This part matters more than most people realise.

Because the worst thing you can do is build something that becomes a chain around your neck… 

You might do ok for a while.
But what you really want is a way of trading that has longevity.

Something you could see yourself doing in two years.

Five years or even ten years.

You might not choose to, of course.

But you want the optionality.

Do you want to hold trades overnight?
Or always sleep with a flat book?

Do you want fast decisions?
Or fewer, slower ones?

These questions shape everything that comes after.

So, your first job is simple.

Work out your North Star for 2026.
Your specialism.
Your heading.

Where is your edge likely to come from?

Lock that in, and the P&L becomes a byproduct.

And if you don’t know your edge yet, that’s okay.
Don’t rush it.

You can decide that your Q1 objective is to identify your edge properly.
That beats running around like a headless chicken for the whole year.