Watch the pitch from the release all the way to the plate. If you pick up a pitch after the release, it will take you longer to judge the speed of the pitch and where the pitch should end up.
"Play" an exhibition game. Don't swing while at bat (and sim the half inning you are on defense by selecting the Fast Forward option). Watch the pitch all the way in. You'll begin to see the difference in the pitches and you'll begin to better judge what will be a strike and what won't. Try to call "ball" or "strike" before the pitch reaches the catcher. You should make the correct call 75% of the time before the end of the 5th inning.
Enter the Batting Practice mode (Mini games?) and hit against the same pitcher you just "played". You have just watched this pitcher's delivery and repertoire, so you should have a high degree of confidence and familiarity with his stuff.
When you feel confident against him, play the game in step one. At this point you should "know" him and should perform fairly well.