The Daily Market Forecast... Simple Not Easy
Wednesday’s Results: Trading was suspended for FOMC volatility.
Quick Tip: Simple Not Easy
You’ve probably heard the phrase “trading is simple, it’s just not easy.” Indeed, trade plans can be simple to execute but because of our thoughts, emotions, and behaviors we make it hard to follow thus missing the result we want.
Let’s say your “simple” trade rules were based on 1) Determine the big picture trend, 2) Sell rallies in a downtrend on a shorter time interval, 3) Buy dips in an uptrend on a shorter time interval. This is not only simple, but it makes sense. Price moves in waves of impulses and corrections within a trend.
The stock market is in a big picture downtrend. You should have sold yesterday’s rally on the FOMC news. Had you done that you’d be looking at a huge winner as the market is opening down today around 2%! If you didn’t follow your rules, if you didn’t make it “easy,” it was because of your thoughts and emotions.
Dr. Woody Johnson dives deep into this formula in his awesome course, “Secrets of the Peak Performance Trader.” T + E + B = R. Thoughts + Emotions + Behavior = Results.
To make it easier for you to get the results you need to master this formula:
- Your thoughts (beliefs) should focus on the positive outcomes. Every failure or loss is a learning experience.
- Your emotions are driven by your thoughts. If your thoughts and mental image pictures are of success, growth, and disciplined behavior then you will act out…
- The behavior you’re imagining.
Make this exercise (self-talk) a part of your morning routine. Repetition is key. You won’t change overnight. Just be persistent.
Today’s Best S&P Turning Points:
Sell 3793.00 stop 3797.50.
Buy 3648.75 stop 3645.25.
Trade Fearlessly,
Mike Siewruk
P.S. Did you know there are MANY techniques and formulas you can use to change your personal psychology about trading to improve your results? Learn how to change your unwanted behavior here.