Trade Aptitude

Results of Wednesday's Best S&P Turning Points: Neither trade idea triggered. 

Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets): 

Short 4002.25 stop 4006.50. Buy 3862.75 stop 3857.00.

Globex View: After breaching yesterday’s low, price is making new Globex highs (7:00 ET) with all index futures showing modest gains. 

The World Sentiment Index: (+100/-100) JUMPS from -57 to zero in a world of mixed sentiment. No historical edge.   

Catalysts: Jobless Claims @ 8:30. Not much else. 

Quick Tip: Mistakes

Day trading is my favorite style. I like to see short term results. It does require attention and focus, though. We can make mistakes and need a corrective plan for when that occurs. 

Trading the S&P futures yesterday, we started with a 26.25-point winner. Followed by an 11.50-point winner. Then an 18-point loser. Not unusual for a strategy that wins 60% of the time. On the next trade, I missed entry, and a profit target then instantly made a big mistake. I went market in at what I thought was a better price. It wasn’t. Small loser for the strategy was a full loser for me. Winning morning gone. 

Why I was impulsive is a mystery to me. It happens rarely but it does happen. The good news is that I have a corrective plan. First, take a break. Don’t trade when you’re upset or in any way feeling negative. Second, after you’ve “cooled down” journal the event in as much detail as you can. There is something therapeutic about “purging” the bad feelings. Third, return to trading when your confidence and positive thinking returns. 

That’s it. Simple and effective. You may have a different plan for mistakes but what’s important is not my or your plan, it’s having and executing a plan that works for you. 

Trade Fearlessly,

Mike Siewruk 

P.S. Feel free to share this blog with all your trading buddies.