Having a react mentality is not antinomic with anticipation. A great footballer said for example that what makes him different from other average footballers is his anticipation ability. Anticipation is prepation BEFORE market's opening whereas REACTION phase is during market's session. PREPARATION is the key to do 80% of things right. Read the interesting article from Southern California Basket Ball Academy http://www.shootinghoops.net/scbacreed.php Anticipation has to do with creativity because you have to imagine scenarios. People who can't anticipate well better be scalpers than swingers. Before having my model I used to be a scalper ( I still prefer scalp but for reasons of risk control rather than anticipation).
Hi Harry, How would you have anticipated that surprised rate cut a few January's ago? Or would you have reacted to it after it was announced? Are you prepared to anticipate today's breaking news events prior to today's close? NihabaAshi
Hi Nihaba, I totally agree with what you are saying. In the beginning of my trading career I had a real time news feed (or at least what I thought was real time). Even with keyword filters I spent the majority of the time watching and waiting for that "big news event" and the only thing it did was cloud my mind. Same thing with chat rooms I get easily distracted, the more I focus on what I am doing the better I trade. Every morning I check to see what economic numbers are coming out. Let's say abc economic number is due out at 10:00 with an expected # of .5 and it comes out at .7 I would not know what to do with that info. I have seen the market tank on a good # and rally on a bad #. Thanks for your input. regards, Bruce Hawkins