Perceiving market opportunities entails spotting setups or potential market directions. The market always presents opportunities and very few know how to spot them and take advantage of them.
Perception is a product of insight into market behavior. Until you have a deep insight into how the market operates and the different scenarios that the market can present, you will not be able to decipher a good opportunity for profiting.
The ability to know what the market will do next is a common feature amongst veteran traders. If any trader desires to move from a novice trader to a professional trader or have consistent profitability, he/she must learn this skill.
In becoming a trader with an ability to perceive market opportunities, one must be able to make effective distinctions in the marketplace and this must be done from an objective perspective.
Adopting a Broad Perspective of Market Activity
In training your perception, it is mandatory to have a broad picture of market activity from a larger time frame perspective. Achieving a broad vision of the market is possible through the institution of a disciplined trading approach while learning how to release oneself from negative charge emotional energies.
When developing a disciplined approach to trading, the trader seeks to develop a degree of self-trust that guarantees a high level of self-control and tames recklessness when making investment/trading decisions.
In an environment that offers no external constraints as our conventional society does, a trader who does not adopt a high level of discipline while trading will be at the mercy of his/her emotional vicissitude which could be very costly.
Fear, most times, stems from the lack of self-trust; the inability to be confident in the predictability of one’s behavior. Every aspiring disciplined trader must have self-assurance that they will always act in their best interest at every point in time. It is worth emphasizing that you cannot understand the market better than you understand and have confidence in yourself.
Repairing a Damaged Psychology
In adopting a broad view of market activity, a trader must learn to release himself from any form of negative charge energy that emanates as a result of the pain from past trading experiences. If you did not begin your trading with a proper psychological balance or with a disciplined approach, then most likely there is psychological damage that needs to be fixed.
A damaged psychology is one with loads of negative charge energy creating fear in the mind of the trader. This mental state forces the trader to perceive the market as threatening whereas, unknown to this trader, it’s his/her fear that is being projected into the marketplace.
Fear limits your scope of perception and prevents you from making all necessary distinctions in market behavior. This inevitably reduces profitability because in cases like this, the trader has a limited vision and can hardly perceive even the best of trading activities.
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