From Guesswork to Preparation in Trading

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Most traders want to understand where the market may go. But without a dependable approach, that effort quickly becomes guesswork.

Without a rational system, traders depend on whatever is at hand: opinions, indicators, news, or tips. It may seem like analysis, but it lacks consistency. As a result, their view keeps changing. What looks clear in one moment becomes uncertain in the next.

That is when guesswork starts.

Guessing often feels logical in the moment, but it is still unreliable because it is not built on a clear, systematic approach. There is no strong reason to trust that view or know when it might work out.

Without a reliable method, even direction becomes inconsistent and unreliable. This is why most attempts to forecast the market fail. Not because direction cannot be understood, but because it is not built on a method that can be trusted.

Understanding direction gives you an early view of the market—before the move becomes obvious to everyone else. It allows you to position yourself ahead of the move rather than react after it has already begun.

But here is what most traders miss. 

Direction only becomes useful when it is supported by a clear, systematic plan for action. Without this, it remains unstable and cannot be used with confidence.

This is where most traders struggle.

Even when a view on market direction is formed, without a clear plan or defined next steps, it can lead to uncertainty, late entries, or missed moves.

This can be seen clearly in the Crude Oil example below.

A buy in Crude Oil was forecasted around October, but no trade was executed then because the setup was not ready. Later, when the setup became clear, it was ready to be acted on. This shows the difference between spotting a move and being ready to act on it with a clear plan.

This same process applies across all time frames, whether you are looking at larger moves or trading on intraday and daily charts.

But a systematic approach based on a reliable forecasting method changes everything. It lets you prepare in advance. You know what to look for, what needs to line up, and how you will respond when it happens.

So when the move starts, you are not just reacting. You are ready for it.

That is the difference.

A trader who guesses keeps changing their view because it is not based on anything solid. A prepared trader, on the other hand, follows a clear plan. One depends on the moment, while the other is ready before the move starts.

Markets do not reward random guesses. They reward systems and preparation.

Direction shows you where the move is likely to develop. A systematic approach built into the method makes that view reliable and actionable. Preparation lets you plan and take action before the move starts.

P.S. This approach of building a reliable view of market direction and turning it into a prepared trade plan before the move begins will be explained in detail in my upcoming course.

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About The Author

Divesh Jotwani is an active and full-time trader in the Indian markets. He has spent over 20+ years researching and discovering WD Gann's methods and applying them daily in the markets.