The Daily Market Forecast... exit here.
Tuesday’s Blog Results: Another runner yesterday… 17 points. But this one was different. Here’s how the buy level was suggested:
“Long Level: Buy 4371.00 stop 4367.25 which would require a ton of patience. Consider buying 4500.25 stop 4494.50 IF price trades above and retraces back.
Nice bonus idea, eh? Join our team and get these every day.
Today’s Lesson: Exit here.
Every trade you exit only has two outcomes once you’re filled.
- You left money on the table.
- You got out just in time.
Those two outcomes are packed with emotional response. “Damn… I got out too soon” (anger). “Holy smoke am I on fire today” (elation).
Do you think your emotional reaction might influence your next trade?
Curtis Faith, one of the original Turtle Traders and author of Way of the Turtle, summed it up succinctly: “Winning traders think in the present time and avoid thinking too much about the future. Being right (winning) and being wrong (losing) is not the approach to use. Ignore outcome bias.”
On the tactical side, notice that price stalled and reversed yesterday (green line) at the prior day’s high. Nice exit idea. Prior lows, closes, Globex highs and lows, ATR extensions, all are exits to consider.
Today’s Best S&P Futures Turning Points:
Short Level: Sell 4575 stop 4579.75.
Long Level: Buy 4512.75 stop 4507.00.
Trade well,
Mike Siewruk
P.S. Tired of trading alone? Need more quality setups? Learn how our team-based approach can accelerate your trading performance. Click here for FREE video training.