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Today’s Best S&P Futures Turning Points: Nothing tradeable today.
Wednesday’s results: This strategy is on hold... but is improving and likely out of the drawdown soon.
The World Index: (+100/-100) drops from -64 to -71 with all major world markets staying Bearish on rising volatility.
Catalysts: GDP, Durable Goods & Jobless Claims @ 8:30. Disappointing earnings prevail.
Quick Tip: Outcome Bias
Imagine this: your strategy has a track record that while not proven to repeat in the future, is statistically sound historically. Simple, logical rules that make sense.
You’re trading it and getting great results. Some days the strategy performs better than you, other days you do a little better. We’re human and we let discretion slip into our trading occasionally.
When you started trading this strategy you were fearful of it not working. You overcame that fear by starting with small risk. As you started winning more often and growing your account you felt fearless entering your first few trades every day.
On days when you started losing you quit after a few losses. On days when you started winning you quit after a few wins. Both rules sound logical. What they are doing, however, is protecting your remaining fear. And that fear comes from Outcome Bias.
If you were confident that over time, taking every trade, that you would be comfortably profitable, then the outcome of any one or series of trades is unimportant. What is important is your consistent application of your trade plan.
Curtis Faith, legendary Turtle trader puts it this way: “Good trading is not about being right, it is about trading right. If you want to be successful, you need to think of the long run and ignore the outcomes of individual trades.”
Not comfortable with your strategy yet? Our Swing Trading team uses unusual options trades and Insider buys for candidate selection. These are setups with considerable evidence from thousands of trades. We use a tool that makes this incredibly easy. Watch the demo here. No disappointments!
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to pass this along to your trading buddies. Share in the wealth!
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