Trade Aptitude
Results of Thursday’s Best S&P Turning Points: The buy @ 4131.50 offered 10.50 points.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 4029.75 stop 4024.25. Short 4157.00 stop 4161.75.
The World Sentiment Index: (+100/-100) PLUMMETS from +71 to -57 with all major world markets except Tokyo very Bearish on higher volatility. Historically price has closed down from the open 73% of the time.
Catalysts: Consumer Sentiment & Inflation Expectations @ 10:00. Oil soars on Russian production threat.
Quick Tip: Sequencing
If trading is 80% psychological that leaves 20% to the edge your strategy has. We really don’t know if the 80% figure is accurate but you’ll hear a big number like that from many skilled traders and coaches. Regardless the accuracy, how we behave as traders is vitally important.
Back when racquetball was popular I was a competitive player and found a coach to improve my performance. Here’s the dialog from “lesson one.”
Coach: “Why do you play racquetball?”
Mike: “Exercise, gets me in shape, fun.”
Coach: “You have it backward. You don’t play to get in shape. You get in shape to be a winning player.”
Mike: “Aha!”
So, my first lesson ended with me getting a detailed exercise regime and the directive to follow it precisely before next week’s lesson.
Sometimes what we’re looking to achieve has a hidden sequence. In trading knowing yourself and addressing weaknesses should be early in the sequence.
How much time do you spend on improving your control over your emotions? Or developing discipline?
Review is an important process to improve your performance (at anything). In trading the dedicated few who review every day start with their charts. The really dedicated trader will keep and review a “thought journal.”
How did you feel that day? What was going through you mind when you were entering trades, exiting trades, winning, losing, making mistakes, being perfect? The list goes on.
Keep a thought journal and review it along with your charts. No downside to that.
While that’s a good start, getting trained by a professional in ALL the ways to improve your personal psychology about trading is better. Pro traders do it. You can too.
Trade Fearlessly,
Mike Siewruk