The Daily Market Forecast... Admission

Tuesday’s Results: The suggested short @ 4414.50 stopped out for a 5.75-point loss (per contract).

Quick Tip: Admission

Five losers in a row yesterday and passed on a few trades that were winners. If this hasn’t happened to you it will. Afterward I received this text from a member of the team…

“I am sorry you took a beating today. You REALLY do lose gracefully. Well done! The worst thing about trading isn’t losing trades, it’s losing trades AND skipping the winners. Our minds play tricks with us on such days.”

So, what are the lessons here?

First, if you’re upset about losing you’re taking on too much risk. Lower your position size.

Second, review your performance. In doing so I realized that one trade did not fulfill all the rules. I shouldn’t have taken it. It was a momentary lack of discipline and attention. Knowing this and admitting it is a powerful tonic for improvement. But you won’t get better if you don’t review!

Third, regardless of the historical performance of your strategy there will be days when you see it fail and watch the winners slip by you. That doesn’t mean you change your rules based on one day’s results. As Thomas said in the text… “Our minds play tricks with us on such days.” Worth repeating.

Today’s Best S&P Turning Points

Sell 4486.50 stop 4490.75.

Buy 4358.75 stop 4354.00.

Trade Fearlessly,

Mike Siewruk