The Daily Market Forecast... Reframing

Monday’s Results: Buying 4002.00 stopped.

Quick Tip: Reframing

As you review your trades from yesterday you’ll likely pause at the suggested buy at 4002. It was stopped out by only 3 ticks and then ran for more than 40 points.

Was the stop too tight? Was the entry too soon? You’re thinking about how you could have gotten into the trade.

Now if you’re a discretionary trader with no evidence of edge, just intuition and experience, that may be the correct review process.

Our team is rule-based. We work with statistically relevant evidence to make trading decisions. Pondering the reasons how we could have “made” it a winner is a waste of time. Specifically, we know that our entry and stop were correct probability-wise.

The review process then becomes “reframing.” Taking a negative and making it positive. Ask yourself, “More or less, did that volume level work?” Yes! It picked an intraday “V” bottom and triggered a 40+ point run. Granted, it’s not money in your account. But did your confidence in the strategy get stronger?     

Today’s Best S&P Turning Points –

Sell 4114.00 stop 4119.75

Buy 3932.75 stop 3929.25

Trade Fearlessly,

Mike Siewruk

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