The Daily Market Forecast... breakeven wins
Monday’s Blog Results: The suggested long entry only bounced for a 3.50-point scalp. The Team saw two more like that, all three trades breaking even.
Today’s Trading Tip: Breakeven is a win.
Yesterday you read about alternative exit strategies and how in current market conditions our “rapid stop movement” is working best.
It’s a simple risk-averse ruleset designed for day traders only. Enter a minimum of 3 contracts. At profit target 1 move the stop on the remaining contracts to breakeven “for the trade.” This means you’ll be giving back that initial profit. At profit target 2 move the stop to breakeven for the remaining contracts. This means you’ve guaranteed a small winning trade. As the trade runs move the stop to pivots on the chart.
Downside: You’ll miss some big moves in your direction if price is choppy around your entry. You’ll have plenty of breakeven events. Hindsight will tease you into greediness and you’ll abandon the strategy.
Upside: You’ll miss many stopped out trades. You’ll have many breakeven events. Psychologically you’ll feel less anxiety over losing.
Try it for 100 trades or so. Document your results including your thoughts and feelings at the time. Reframe your mindset to view a breakeven trade as a winner. In fact, it is. You had opportunity that in the end cost you nothing. That’s a win.
Today’s Best S&P Futures Turning Points:
Short Level: Sell 4670.75 stop 4675.75 (5.00 risk).
Long Level: Buy 4633.25 stop 4627.50 (5.75 risk).
Trade Well,
Mike Siewruk
P.S. Join us every Saturday morning @ 10:00 ET for our weekly LookBack (5) trade review session. Every trade for the week is analyzed. Now open to the public. Meet the team. Ask questions. Register here for the December 18th session.