The Daily Market Forecast... Artful Exit

Tuesday’s Results: The buy @ 3891.50 stopped out instantly.  

Quick Tip: Artful Exit

Entries for directional trades are easy. You expect price to rise or fall and you have supporting evidence where the entry should be. Not a whole lot to think about. 

Exits are another story. While a good entry is important, you make or lose all the money when you exit. If you monitor your open trades you’ll see the open profit or loss moving up and down. Watching money come and go can be an emotional experience, especially for the newer trader. Not good. 

You need rules in your trade plan for exits. But rather than have one static rule set you should have multiple exit strategies to use in different market conditions. Once you enter, the market characteristics may change, and your original exit idea is less effective. 

Here’s one alternative to consider. If you’re trading multiple strategies (tuned to different market conditions) you will frequently see an entry signal on one strategy and an exit signal on another. Sounds confusing but assume you’re long and holding solid open profit when the other strategy signals short. If both strategies have edge you could take partial if not all the profit. 

If you want to learn more about multi-strategy trading join me on Sunday July 10 @ 5PM ET for our new FREE mini class “Optimizing Multi-Strat Trading.” I know it may seem early to register but the class is limited to only 100 traders. Reserve your seat now. 

Today’s Best S&P Turning Points:

Sell 3860.50 stop 3866.25.

Buy 3780.50 stop 3775.75.

Trade Fearlessly,

Mike Siewruk

P.S. With the Futures Globex session opening during the class, we might get to do some live trading together. Register now.