The Daily Market Forecast
Tuesday’s Best S&P Turning Points Results: The suggested buy level @ 3940.75 stopped out.
Quick Tip: Risky Business
There probably isn’t a book, course, or video on trading that doesn’t stress risk management as the key to ultimately succeeding.
Determine your risk number. Make sure you consider losing streaks and drawdowns. Size your position. Use a stop loss order. Done.
Not quite. That was simply one part of your “trade risk.” You still need to know if, and when, you’re going to move the stop. How are you capturing the profit that remains “at risk?”
There are many forms of risk in trading that require preset rules in your plan.
1. Trade Risk: Managing open trades.
2. Psychological: Managing your emotions.
3. Market: Preparation for outlier events.
4. Liquidity: Ensuring your chosen asset has enough buyers/sellers.
5. Strategy: Knowing when to “halt” a strategy and when to “start” it again.
6. Brokerage: Can you get your money out?
7. Technology: Enable back-ups and redundancy.
For a good start at answering most of these, read Van Tharp’s book Trade Your Way to Financial Freedom. He covers the psychology aspect very well. No disappointments.
The World Sentiment Index: (+100/-100) DUMPS from +36 to -43 with all major world markets bearish. Historically shorts outperform.
Catalysts: International Trade @ 8:30. USD continues to strengthen, gold losing luster. Waiting on Powell tomorrow.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3876.75 stop 3871.75
If that fails, sell 3872.50 stop 3877.50 on the retracement.
Trade Fearlessly,
Mike Siewruk
P.S. Multiple strategies, software tools, teammates, and coaching. Learn why you should join our team here. For a personal consultation to assess fit (without selling) email me for an appointment: mike@thedailymarketforecast.