Best Practices Inwards Trading: Maximizing Your Data Processing

The typical trader plant from multiple screens as well as each of the screens carries multiple pieces of information updated inwards existent time.  Some screens update charts; or thus update news; or thus are for messaging; or thus rail quotes across many markets.  No trader wants to immature lady a fast-breaking development, thus the temptation is to add together screens as well as add together to a greater extent than information to each screen.  Can traders actually procedure all that information inwards existent time?  How much of what appears on our screens genuinely is information–and how much is distraction?

Today’s best practise comes from Terry Liberman from WindoTrader.  He emphasizes the importance of agreement as well as owning your trading information processing system.  Years of sense inwards developing effective trading platforms convey taught Terry quite a fleck nearly how traders procedure information.  His primal indicate is that nosotros cannot maximize our processing of marketplace information unless nosotros empathise our information processing strengths as well as play to those.  One of the odd features of WindoTrader is the might to overlay information displays on i another, thus that the trader tin visualize toll activity on several fourth dimension frames simultaneously.  For a highly visual information processor, this tin render a pregnant cognitive efficiency.

As Terry points out, the best practise of streamlining information to tally your processing mode is increasingly important, given the explosion of information available to traders:

“As nosotros know, at that topographic point is no shortage of information because this is the Era of Information Overload on Steroids.  The of import matter for those of us who merchandise is to travel able to chop-chop as well as easily uncovering the information that meets our requirements every bit to relevance, usefulness, applicability, as well as fit.  

One means to mean value nearly information processing is to recognize that information are non information as well as must starting fourth dimension travel converted into information through your filters of relevance, importance, as well as applicability.  Once they conk information as well as run into your criteria every bit information, you lot straightaway convey cognition as well as or thus agreement of it thus you lot tin brand or thus decisions nearly it.  And then, i time it meets your requirements, create upwards one’s take away heed how you’re going to deed on it inwards alignment amongst your surgery criteria.

To increase your might to collect the information your require as well as procedure it, laid about amongst the information you lot need, why you lot involve it, as well as the do goodness it volition specifically render you lot at this minute inwards time.  Next, determine both the context as well as the content of the information also every bit its validity overall as well as its validity for you.  And finally, innovation the specifics for using it as well as gaining the most from it inwards your pursuit of achieving your destination or goals.  To read something fun also every bit idea provoking, cheque out Information Anxiety.”

Terry makes a rattling of import point:  trading is, at root, a cognitive process.  It is all nearly taking inwards data, assembling information into information as well as insight, as well as making decisions based upon the ongoing streams of information as well as insight.  How much of what is on our screens is genuinely essential to our determination making?  How many screens would nosotros employ as well as how cluttered would each concealment travel if nosotros exclusively focused on the information most relevant to our trading decisions?

Streamlining our information processing forces us to mean value nearly our thinking as well as follow our chains of reasoning inwards generating audio trading decisions.  Terry’s best practise is non simply optimizing our screens; it’s optimizing our idea processes as well as and thus adapting our screens to the best of our processing.  More is non better; many times it’s fast information processing that is every bit of import to trading every bit deep information processing.  By carefully organizing what is on our screens as well as how it is displayed, nosotros tin improve the efficiency also every bit the effectiveness of our idea processes.

Further Reading:  What Trading Teaches Us About Life

Leave a Reply