The Daily Market Forecast
Monday’s Results: Price chopped sideways in a very narrow range for recent volatility. The suggested buy @ 3962.75 stopped out.
Quick Tip: Time to Change?
All traders experience losing streaks and drawdowns in their trading account. Market conditions change. Some strategies stop working and others start working. It’s all very cyclical.
Handling this is tricky. One voice in your head says, “stay the course, it’ll come back.” The other voice says, “dump this strategy and find one that is working.”
But it doesn’t have to be a black or white decision. You can reduce your position size to the bare minimum or trade in simulation. Examining your equity curve for clues on how much prior down cycles lasted might help.
The BEST solution is not reactive, though. It’s proactive. Design your trade plan with multiple strategies. Even if you’re not trading them all at once, monitor their performance as if you were actively trading them. Keep detailed records. If you’re struggling with your primary strategy and you see another strategy is running smooth, the solution is obvious.
Here’s a really big tip: If all your strategies are struggling simultaneously (which can happen) what does that tell you? Take a vacation!
If you want to learn more about multiple strategy trade plans, our FREE “Ultimate Personalized Trade Plan” class has been updated with PAIDtm methodology (Plan/Abundance/Investigate/
Today’s Best S&P Turning Points (in fast moving markets consider a wider stop and less size):
Sell 3994.50 stop 4000.25.
Buy 3908.50 stop 3903.75.
Trade Fearlessly,
Mike Siewruk
P.S. This is your only opportunity to attend the new “Ultimate Personalized Trade Plan” class for FREE. The tuition afterward will be $197. Grab this gift now!