The Daily Market Forecast

Wednesday’s Results: The suggested breakout short at 4157.00 offered a solid 21-point run. 

Quick Tip: Barbell

You certainly have a risk management section built into your trade plan. Without it you’ll fail at trading sooner or later. Many traders think their chosen stop loss order is their risk management plan. Not enough. Here’s a list of all the risks you need to cover in your plan: 

1. Trade

2. Psychological

3. Market

4. Liquidity

5. Strategy

6. Brokerage

This game is looking riskier suddenly. How do you balance concern over all the risks with a focus on a positive expectation? 

Top notch traders have what is called a “barbell” personality. They are optimistic about the future and confident their strategies will prevail. But they are paranoid about what will prevent that from happening. 

Our goals are shiny and desirable. But we know the path won’t be smooth as glass. Do some thinking about what could stop your success. Planning for it will make it easier to digest and solve. 

Today’s Best S&P Turning Points (in fast moving markets consider a wider stop and less size): 

Sell 4292.50 stop 4297.50 (highly unlikely but that’s what the chart says at the moment) 

Buy 4108.00 stop 4202.25

Trade Fearlessly,

Mike Siewruk

 P.S. What’s more important in trading? Math or emotions? Learn how to change your unwanted behavior here.