Change It Up by Trade Aptitude

Yesterday’s results: Buying 5939.00 stopped out. The short suggestion didn’t trigger. 

Today’s Best S&P Futures Turning Points: Buy 5851.50 stop 5846.25. Short 5904.50 stop 5909.50.

The World Index: (+100/-100) rises from +7 to +14 with mixed sentiment on low volatility. 

Catalysts: Durable Goods @ 8:30. UofM Consumer Sentiment & Inflation Expectations (revised) @ 10:00. Fed’s Collins @ 11:00. Final day of IMF meeting. 

Quick Tip: Change It Up

Great performers, traders included, never quit when the inevitable roadblocks and challenges arise. They learn from their mistakes, adjust, and move forward. 

You’re heard the term “reinvent yourself.” Out of favor actors do it. Corporations do it. Sometimes traders must do it. 

Like many traders who enjoyed the Tech Bubble in the late ‘90’s, I was trading a momentum strategy that printed money. It was simple and easy. Even during the crash, it performed well going short. Then it stopped working. The volatility dried up and the risk reward profile flattened. I churned out a sizable losing year after several good years. 

In hindsight, I was not quick enough to realize market conditions had changed and my strategy wasn’t a great fit any longer. Another mistake I made was to continue trading the same size! Lessons can be tough. 

When your strategy or style seems to stop working you don’t know if it’s going into the inevitable drawdown, or it’s time to move on. Do this: 

1. Lower your size, then… 

2. Switch to simulation, and… 

3. Analyze the current market state relative to your successful period. 

It may be time to halt the strategy and reinvent yourself. All strategies don’t work in all market conditions. Markets change. You should too. 

Reinvention in this case means researching different strategies to find one that resonates with your personality. There are plenty of ways to trade the market. Enjoying and believing in what you’re doing is vital. 

Flexibility and open-mindedness are critical to continuing success in the markets. Just like any other profession.

Our trading teams focus on multiple strategies for day trading futures and high-probability candidates for swing trading options. Maybe you'll fit right in. You can try either or both risk-free.

Trade Fearlessly,

Mike Siewruk

P.S.  Feel free to pass this along to your trading buddies. Share in the wealth!