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Trade the present not the future

26 Aug 2025
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How to stick your mind to the present in the market?

There is a joke in the stock markets that there are 3 types of players. There are traders, investors, and then investors by default. Let me explain. Investors by default are those who started out as traders but when the price moved against them, they decided to hold on to the stock and became investors by default. 

Ideally, as a trader, if the price movement goes against you, you should terminate the position with a stop loss and then take a fresh view. That is because as a trader you trade the present not the future. That is the job of an investor. The trader trades on trends already available in the market.

One of the simple rules in the market is to never try and outsmart the market. What do you interpret if you buy and the market falls or if you sell and the market rises? Don’t blame the market, instead take it as a subtle message from the market that you are missing out on something crucial in your analysis. 

Many traders try to go contrarian and turn against the tide of the market. That is the primary mistake. As a trader, you always trade the present; which means the existing conditions. It is not your job to anticipate conditions.

Table of Contents

  1. How to stick your mind to the present in the market?
  2. For traders; what can happen is not as important as what is happening
  3. How to stick your mind to the present in the market

For traders; what can happen is not as important as what is happening

As a trader, do you try to predict whether the Nifty will go up or down or whether markets will find a bottom or the top? You are losing focus. As a trader, your primary job is to interpret the existing trend in the market and trade within these limitations. A trader does not make money by anticipating the market. He makes small profits by understanding the undertone of the market and then enhances ROI by churning money aggressively. Check momentum and don’t bother about medium-term direction of the market.

How to stick your mind to the present in the market

It is not as complex as it appears to be. Here are five basic rules you can use to ensure that as a trader, you are focused more on what is happening in the markets.

  1. As a trader, it is essential to admit the fact that the market represents the collective wisdom and the collective mistakes of millions of investors across India. As a proxy, it is surely more representative of the market reality than what you believe is going to happen. Just listen to the market.
     
  2. Ask yourself simple questions on interpreting market trends. If you see a breakout, ask if the breakout is real. If a stock is finding support or resistance, ask if this support or resistance is strong enough.
     
  3. Put your efforts and energies into understanding how quickly and effectively the stock reacts to news flows. You don’t need a trading stock that hardly moves. Don’t get obsessed with your own view on the stock or market. Just listen to the market and draw your conclusions on what it means for your positions.
     
  4. Focus on what the company announces and don’t try to anticipate what the company will announce. If there is a change in the results or if there is a corporate action, take a trading action, only if there is going to be a reaction in the short term. As a trader, you don’t care about 5-year structural shifts.
     
  5. Finally, don’t lose perspective. As a trader, your focus is on time utilization and capital preservation. You must calibrate your trades accordingly and focus purely on the present; not so much on the future. The trade must make sense to your time frame and not deplete your capital beyond a point. Trade on current themes, that is your job.

FAQs on Trade

What does “Trade the Present, Not the Future” mean in trading?

It means making trading decisions based on current market data, not assumptions about what might happen. Traders focus on price action, volume, and trends visible now, not speculation. This helps in staying grounded and reacting to real-time conditions.

Why is it important to focus on the present in trading?

Markets are influenced by real-time factors that can change rapidly and unexpectedly. Focusing on the present helps you avoid getting trapped by emotions or false predictions. It improves decision-making based on facts, not hope or fear.

How does trading based on the present differ from predicting the market?

Trading the present involves reacting to what is actually happening, like breakouts or reversals. Predicting the market is about guessing what might happen next, often without confirmation. One is reactive and data-driven; the other is speculative and riskier.

Is it wrong to use forecasts or future projections in trading?

It’s not wrong, but relying only on forecasts can be dangerous if not backed by current market signals. Projections can offer context, but they shouldn’t replace real-time analysis. Use them as a guide, not a trading trigger.

What are the risks of trading based on future expectations?

Expectations can be wrong or delayed, leading to poor entry or exit points. You might ignore actual signals, increasing the chance of losses or missed opportunities. It often leads to emotional trading based on hope, not strategy.

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