The Daily Market Forecast

Monday’s Results: The suggested buy at 4137.25 offered a 16-point bounce with only 1.5-points adverse.

Quick Tip: How Much is Enough?

Entries are important but all the money is made (or lost) on the exit. Arguably, there is some “art” along with the science to exiting. 

The culprit is hindsight. You take your profit and then see how much you didn’t get. You stay in the next trade looking for a runner and it reverses and stops you out after you had a sizable open profit. Frustrating results from unskilled trading. 

In “The Disciplined Trader” by the late Mark Douglas, he identifies nine critical trading skills. 

#6 - Learning how to let the market tell you how much is enough, instead of assessing the potential from your personal value system of how much is enough. 

This seems simple but isn’t necessarily so. You can look at the charts and target a reversal pattern or level for your profit target. Trail-stop. Scale out. All valid exits. Then YOU get to see how much profit you didn’t get, which can be destructive behavior. As Douglas said, you need to learn this skill. 

Today’s Best S&P Turning Points (in fast moving markets consider a wider stop and less size): 

Sell 4178.75 stop 4183.25.

Buy 4097.75 stop 4093.00.

Trade Fearlessly,

Mike Siewruk

 P.S. What’s more important in trading? Math or emotions? Learn how to change your unwanted behavior here.