Flexibility by Trade Aptitude

Friday’s results: The short at 5954.50 failed. The breakout buy at 5965.25 ran for 85.25 points.

Today’s Best S&P Futures Turning Points: No turning points suggested today. 

The World Index: (+100/-100) jumps from -64 to +21 with sentiment mixed but leaning Bullish on lower volatility. 

Catalysts: Consumer Confidence @ 10:00. 

Quick Tip: Flexibility  

Directional traders use a confluence of evidence to make the long/short decision. They use probabilities gleaned from hard evidence and experience. 

We don’t expect to win every trade but it’s important to have a plan for what to do next after a failed trade. The key to success is being flexible. We research and consider all the evidence, decide, then see we were wrong. 

There are three reactions you can have. One, be stubborn and stick with your original direction. Two, stop out the trade and move on. Three, change your mind and reverse the position. 

The flexible trader can comfortably change. Not easy for some but proven by many. I was told the great investor George Soros wrote in his book about a trade he took in the Japanese Yen. It ended up being a monster winner. His first entry was short based on his analysis. It failed quickly so he doubled his size and went long. Just like that. 

Friday’s turning points are a good example. The short trade failed immediately and the long was a home run.

We are all going to be wrong or mistaken at times. The key to success in anything, not just trading, is recognizing and changing to what is working.

Our trading teams focus on multiple strategies for day trading futures and high-probability candidates for swing trading options. You can try either or both risk-free. Join us.

Trade fearlessly,

Mike Siewruk

 P.S. Share in the wealth! Pass this blog along to your trading buddies.