Write your own ACTIONABLE Situational Awareness (SA)

Make a habit of writing your own SA everyday. It should be actionable SA like say be aggressive on long side, stay out of market till reversal happen, or anticipate a turn, or tighten stop on existing position, or sell in to strength, or fade this move.

Situational Awareness is very critical for swing traders and position traders. By definition day traders have to trade everyday so it does no matter to them.

Situational Awareness will help you avoid risky periods where your setup is not likely to work. It will help you identify periods where your setup is likely to do very well and then you can step on gas pedal. SA will allow you to adjust your tactics like say letting trade run if your SA tells you this is start of a new bull market. Or take profit early if the trend becomes weak or likely to fade.

While some stocks will work independent of the market direction, majority are influenced by the market. Especially at turning points in market this is important.

If you want to be in this game for long term and keep your profits develop SA skills by practicing daily. You will see that all successful traders have some sort of market timing model which helps them avoid some periods in markets.

Don't focus on what others think. Develop a logical framework for your own SA. My framework is driven by market breadth trends, but you can develop your own framework based on market structure.

Do your own analysis and write just 4 to 5 lines everyday. See if market is acting as per your SA. Refine and refine your process over days or months till you are very confident in the game.

In few months you will develop confidence in your own judgement and SA will become integral part of your daily market thinking.

Above all SA will help you to make and keep money.