The Daily Market Forecast... Trader or CEO?
Wednesday’s Blog Results: The suggested long level failed in both the Globex and Day session for a 4.25-point loss (per contract). Team members saw an afternoon breakout good for 17.75-points at the close (see chart).
Today’s Trading Tip: Think like a CEO.
You should manage your trading like a business. Even if you’re employed, think of it as a side business. You’re unlikely to have employees and that means you need to wear different “hats” to be successful. You’re the CEO, CFO, and Trader.
The CEO creates the vision then ensures it becomes a reality. She is the author of the trading plan, documentation and review processes. She is not mired in day-to-day performance. Her focus is on long term growth and goal attainment. Spend some time developing a written vision statement and goals (within your trade plan). Read them frequently when you’re wearing your CEO “hat” and especially when you’re facing performance challenges.
The CFO manages the money. Profits and losses. With trading this can be a daily job. The CFO is objective and unemotional. Her job is to ensure the Trader will execute the processes and rules the CEO defined. The CFO mindset is critical during the documentation and review process. Her output is more than numbers on a spreadsheet and tax returns. She analyzes the strategies to find improved “edge” in the trading rules and hands them to the Trader for execution.
The Trader is the low-level employee. She is solely responsible for completing trade execution without concern for results. Her “policy manual” is the trade plan and edge documents handed down by the senior executives. She can and should offer ideas for improvement but the ultimate decision for changing the plan is with the CEO, through the CFO.
OK… I know this sounds like a version of multiple personality disorder but if you have the correct mindset for each task and take the responsibility of each “employee” seriously, your vision and goals will manifest. Try it.
Today’s Best S&P Futures Turning Points:
Short Level: Sell 4661.50 stop 4666.25 (4.75 risk).
Long Level: Buy 4615.00 stop 4609.25 (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 4th session.