Anticipating Your Trades Is Vital…
When it comes to having a good life, many people want to do as little work possible for the greatest reward. Since we’re called The Lazy Trader, we can certainly subscribe to that idea – and we do. Trading for just 10 minutes each day should, once you’re comfortable with the markets, be enough. Yet for some traders it’s not – some traders feel that using up all of their time analysing the market and watching for something to happen is the way to make a profit.
It’s not. Anticipating your trades is the way to go.
Anticipating your trades means that you won’t have to spend many hours working out what’s best and how things are going to work. Instead, you will be able to carry out your market analysis (which is still important) in a much more methodical manner, eliminating the stress and the time it normally takes when you have no plan and you don’t know what you’re looking for.
This means ensuring you are ‘in tune’ with the markets and that you have a good idea of what’s hot and what’s not – that makes anticipating your trades quick and easy because you know what you should be looking out for. Previous analysis will certainly help because it will help you to make better decisions as you go on with your trading journey.
For some, anticipating your trades may feel like simply reacting to the market and in some ways it is – but there is more to it than that. Anticipation requires more thought and more knowledge than a simple reaction does. Yes, they may both give you the same result, but that won’t happen every time. If anything, a reaction that results in a positive outcome is usually more about luck and timing than anything else. Anticipating your trades and getting a positive outcome is much more likely – and easier too.
It is often the case that traders are so busy reacting to what is happening in the market that they don’t have time to work out a plan that will help them to more accurately anticipate their trades. Unfortunately for them, this is a good way to lose money, and it seems that the harder they work, the more they lose. Anticipating your trades the right way first time is a surer path to success. Therefore, you need to take the time to step away from your trading for a while and simply watch the markets. Get a good idea of what is happening and why. This is a great way to learn about anticipating your trades.