Talk about a busy day. After a 3-hour Live Trading room session, followed by a failed attempt at running (thanks to this random heatwave), I returned home and recorded two trading videos focusing on the same topic. Predictive Analysis
“I’m predictive in my analysis but reactive in my execution.” That was the clever quote that I came up with this morning and not to toot my own horn, but this one actually makes me sound a little smart.
Both in trading and in life it’s important to be able to make predictions or educated guesses in order to prepare for what’s ahead. However, what’s more, important is our ability to judge, react & adapt to the situation at hand. After all, how often does perfect occur?
I just finished recording a trading video for members of my Syndicate Program providing a perfect example of this subject. The Canadian Dollar has been strong as of late and the price has fallen over 500 pips in the past month. We are now approaching a previous level of structure support and my prediction is that we’ll see some type of reaction.
However, just because it’s my prediction, doesn’t mean that I need to be super aggressive and throw an order on. Rather I want to wait for the market to confirm my suspicions before entering, allowing me to be in a much safer trade. Does this mean the trade will win? Of course not, but it’s much better than just blindly throwing my money at a wall, hoping that it will stick.