So, you have that great new trade station and all the new software. You receive information at the speed of light. You can buy and sell just as fast as the big boys. You are on top of the world. The question is how long term is your perspective. Do you anticipate the market or merely react to the market?

Perspective; Having the Tools and How to Use the Tools

We live in a new era of day trading. We have tools that allow us to receive and send information at the speed of light. It is easy with all of the exotic software, hardware, and all to lose a sense of perspective. No matter what the tools you use you want to anticipate the market and not just react to the market.

Knowing your stocks or your index in which you trade allows you to anticipate the market. Doing your routine homework on promising areas of the market allows you to anticipate the market. Doing simulation trading as a routine part of your day will help you anticipate the market’s reactions and not just react to the market’s moves.

The trader, who, through research and practice gains perspective, learns to anticipate the market. The trader who comes to the trade station without preparation can only react to the market.

We talk a lot about market psychology versus your own psychology. If you think about your job as a trader with a sense of perspective you will spend time on research, on simulation trading practice, and on trading. You will be prepared and will anticipate the market’s moves. What may seem chaotic and random to others will make sense to you. While others merely react to the market’s moves you will be ready to capitalize because you anticipate the market.

Besides being well verses in the stocks and market sectors in which you trade it is important to know your trade station and trading platform from start to finish. Much of computer software is built to seem intuitive. However, using a computer program that seems too easy can make you lazy. Make sure that you investigate all of the workings of your tools, your station and software.

Perspective. It is all perspective. The attractive part of trading is the execution. It is so rewarding to make a successful trade. It is so depressing to lose money. There is an addictive component to day trading that perspective helps fight.

Learning to anticipate the market planning not to react to situations that have lost you money in the past is a matter of perspective and protects you from letting your own internal psychology ruin your business.

A lot of this probably seems repetitive. Well, yes! Welcome to the business world! What you want is repetitive. What you want is to reliably, every day, anticipate the market, quickly react in a proactive fashion to anticipated market moves and make money, every day!

You cannot take the seeming randomness out of the market but you can take it out of your trading. Do your research, your homework to gain perspective. Practice your simulation trading to maintain perspective, and anticipate the market to make money.

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