Trade Aptitude

Results of Thusday’s Best S&P Turning Points: Shorting 4193.50 ran for 12.25 points. 

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

Buy 4134.50 stop 4128.75.. Short 4206.50 stop 4212.25. 

The World Sentiment Index: (+100/-100) DUMPS from +21 to -29 with most major world markets leaning Bearish. Historically the price has closed higher 55% of the time.  

Catalysts: Employment Situation @ 8:30. PMI Composite Final @ 9:45. ISM Services Index @ 10:00. Big Tech losing luster. 

Quick Tip: Entry or Exit?   

The money is made in the exit, not the entry. That’s not to say you can randomly enter a market but the resulting gain or loss depends on your exit. 

The short trade yesterday found a significant level of resistance, reversing four times before the sellers were gone. Depending on your exit rules this great entry could have been a small winner, solid winner, breakeven, or a stop loss. 

Market conditions are important to guide you to your exit rules. Is price moving fast or slow? Is the expected range for the day wide or narrow? Is there a catalyst on the horizon that could impact price direction? 

Here’s some popular exit rules to consider after you’ve analyzed market conditions: 

1. Fixed profit target based on the strategy’s historical performance. 

2. Trailing stop loss equal to your initial risk. 

3. Chart features “to the left” that suggest a stall or reversal. 

4. Trailing stop based on price pivots. 

5. Opposing trade signal to reverse direction.

Which is best and in what market conditions? You’ll only know the answer if you document every trade with results from various exit strategies. 

Our team documents several different exit rule sets for multiple entry strategies and adjusts the details during various market conditions.

If you want to short cut your research, join our team. Learn more here. 

Trade Fearlessly,

Mike Siewruk