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Discover the Top 10 Tools for Listening to the Market

technical analysis tradingOne of the toughest challenges in technical analysis trading is “listening” to the Market. Regularly we are almost convinced to recklessly foretell instead of listening. Or, we suspect we already know what’s going to occur, so we jump in and wing it. Listening, truly listening to the heartbeat of the Market, with your complete being is a talent and one of the most critical and challenging things in becoming a professional trader. The following ten “rules” can be helpful in your technical analysis trading.

Stop the Chat! It is hard to listen and talk at the very same time

Stop the internal gossip. Target the technical analysis trading task at hand.

Give yourself time. Grant yourself “permission” to let the Market speak to you. How does it look, is there an apparent bias? Is a trend already in play?

Let the rhythm of the Market come through. You communicate with the Market through your charts. Look at them. Nod when you can agree, Talk aloud and comment. Hear your charts. They’re chatting with you.

Remove diversions. Good listening means being prepared to switch off the Television, close a door, or stop reading your e-mail.

Give your trading your complete attention. Hook up with the Market Makers. Especially if they’re making a market moving play, or doing something that you intensely disagree with, take a minute to stand in their shoes, to have a look at the situation from their viewpoint.

Wait. Some moves take more time to find their groove or show direction. Give the Market time to get it out before you jump in.

Study your feelings. If what the Market is “exclaiming” creates an emotive reaction in you, be particularly careful. When we are indignant, scared or upset, we frequently miss vital parts of what’s being shown to us.

Don’t presume or foretell. Regardless of whether the trade goes against you, respect the Market. If you interpret a bad trade as a private attack, irrespective of if turns in your favor, you could be building terribly unacceptable technical analysis trading habits!

Be careful. If uncertain stay out. A move should be obvious to you and your methodology. If you find yourself hoping, get out!

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