The Daily Market Forecast... abundance.

Wednesday’s Blog Results: No trades triggered for the day session. Team members saw the short @ 4497.75 run for 50.50 points to the day session close.

Quick Tip: Abundance

The Globex session can be very productive. Many days it’s better than the day session. Less whipsaws. Managing open trades is the challenge. We’re all sleeping.

You can set a stop loss order that trails the price action. This means you’ll always see price go farther than what you took from the trade. This may play with your head. Looking at the chart above you see the price reversal that would trigger your trailing stop.

How do you feel about keeping 21 points of a 50-point run? Lots of different answers to that question and none of them are wrong if that’s your comfort zone. See, if you didn’t trail-stop you would have watched the trade give up 28.25 points on that reversal (blue line). How would you feel then?

The point here isn’t about what is the better exit. It’s about how you view trading. The trader who sees few setups anguishes over maximizing the gain of every trade. The trader who has an abundance of setups (multiple strategies) could care less where price went after they took their profit. Another setup is on the way. Get multiple strategies into your trade plan.

Short Level: Sell 4797.75 stop 4502.50.   

Long Level: Buy 4443.75 stop 4439.50.  Same as yesterday.

Trade well,

Mike Siewruk

P.S. Does your trade plan need a tune-up? Watch the Ultimate Trade Plan mini-course (free). Click here.