What is situational awareness and why is it important to trade successfully

What is situational awareness Why is it important	When to press your luck and when to fold. This is important. Situational awareness in trading is about changing your strategies of emphasis based on change in situation. More refined skill is to think of situations before they develop. If situational awareness tells you in short run there is likelihood of bearishness, should you press your luck. Today I am coming with bearish bias so I am not pressing my luck.
What happens when you have a streak of winning trades	You are most vulnerable after a string of wins. You become overconfident, you trade larger size, you open too many positions. And then you get hit hard by a small move in the market.
What was your bias for today What is the source of that bias	I was bearish based on action in leading stocks. Also because we were up 6 days or so in a row. The MM indicators are approaching bearish zone. Plus I could see speculative junk making big moves. T2108 is around 78.
Do you habitually make money and give it up in trading	If that is your problem then situational awareness is what you are lacking.

What is situational awareness.

The key role of a trader is to operate successfully in a complex and ever changing market environment by making appropriate decisions and taking effective action.
This includes not only responding to opportunities in the market but also to proactively anticipate markets next move.

The Psychological or technical name for a skill like that is called Situational awareness (SA).

(SA) refers to all the situation-specific information and inferences represented in a person’s mind which he or she uses to make such decisions.

Or in simple words SA is “knowing what is going on so you can figure out what to do” . It is what you need to know not to be surprised”

SA consists of whatever answers one currently has in mind to such questions as:

What is happening in the market?

Why is it happening?

What will happen next?

What does it mean in terms of my trading objectives?

What can I do about it?

SA is a military and aviation terminology. Pilots and fighters are trained in SA so that they can make quick adjustments in their strategies in a complex war situation or in case of pilot emergencies.

Research on experts in different field shows that experts have higher SA as compared to novice.

This link will give you a brief overview on SA from aviation perspective:

4 - Definitions of SA

As far as we can establish, the concept of SA was born within the specialist and rather secretive world of military ergonomics and air accident investigation in the mid-1970s, as an attempt to explain the large number of individual variables known to affect the cognitive performance of military and civilian aircrew. However, it did not go public in the civilian literature until about ten years later [the earliest PsycINFO reference when we checked 26th February 2003 was Spiker, Rogers, and Cicinelli (1986)]. It is best introduced by looking at some of the attempts to define it .....

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

404

Recent Articles