Market intelligence is a term not frequently used but quite relevant to succeed in business. Over and above trading, if you consider yourself as an entrepreneur, you have to understand your market. This process could be learned, observed and experienced by actually being involved in the activity one wishes to engage in. The bottom line being, is there a need or a solution being met?
Bringing this home to trading, market intelligence entails doing market research prior to diving deep into the markets. You cannot build a speculation business without data, otherwise that would be gambling. Identify which markets work best for you and how much capital is needed prior to becoming a trader. For instance, a currency trader would be in a better position to trade with a significantly lower amount in capital as compared to an equity trader.
Understanding the trend in the markets and the liquidity for the type of asset you choose to engage in is part of market intelligence. This means that if you’re a Forex trader, the instrument you choose to trade has to make business sense for you. EUR/USD is the most traded pair in the currency market, but that is not to say that you should limit your scope of trading to one instrument. Play around with correlation as long as the instrument you choose follows your trading plan and reward to risk ratio.
Robert Kiyosaki describes financial intelligence as the ability to manage cash flows. A lot of research is ongoing in artificial intelligence and the use of data. If you’re a trader, by extension you’re an entrepreneur. Equipping yourself with the right tools for market intelligence is not an option, it is a necessity.