Trade Aptitude

Results of Friday’s Best S&P Futures Turning Points: Shorting 4821.50 delivered 14.00 points to the buy level at 4807.50, which didn’t fare as well only offering a 4.25-point bounce. 

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

Buy 4807.50 stop 4802.25. Short 4821.50 stop 4827.25 if price closes below and retraces to fill. 

The World Index: (+100/-100) plummets from +21 to -58 with the major world markets Bearish on increasing volatility.   

Catalysts: PMI Final @ 9:45. 

Quick Tip: Expectations and Reality

People are impressionable. Sometimes that can be a problem. We can have great expectations that don’t match up with reality. A perfectly fine trading result can seem like a failure after experiencing a big win. 

Here’s an example. Let’s say the first time you traded the levels shared in this blog your first trade was a 40-point winner. Clearly you’d be ecstatic. What would your expectations be for future trade suggestions? If all you saw were 5 and 10-point winning trades for a while you might be a bit disappointed. But those are more the reality. The frequency of modest winners is much higher than the big runners. 

This happened to me when I started trading in the late 90’s. The strategy I found worked very well during the dot-com bubble. Easy money. Then the volatility vanished, and it turned into a loser. Time to search for a new approach. 

The problem was that my expectations were so high that trading other strategies for less returns didn’t make sense to me. I wanted to find the next killer, big-money strategy. I churned my account for a year and lost plenty. Eventually I understood “reality” and adjusted my expectations. 

Enjoy the big runners, days, weeks, and months but keep grounded.

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Trade Fearlessly,

Mike Siewruk

P.S. Forward this blog to your trading buddies. Share in the wealth!