Trade Aptitude

Today’s Best S&P Futures Turning Points: This strategy remains on hold.

The World Index: (+100/-100) drops from -86 to -100 with all major world markets very Bearish on massive volatility. 

Catalysts: Final Services PMI @ 9:45. ISM Services PMI @ 10:00. Global equities selloff accelerates. Tokyo enters Bear Market. 

Quick Tip: Down Fast

In its simplest form trading is nothing more than risking money to make money. You need to be a net winner. This will happen if your losses are kept “small” (that’s a relative word) and you have…

1. More winning than losing events and/or 

2. Larger winners than losers. 

Successful traders look for asymmetrical trades. These are trades where the risk is small compared to the potential gains. 

One application for asymmetry is frequently overlooked. Trade direction. Evidence shows that prices tend to fall faster than they rise. Why is this? Fear can be more powerful than greed. 

Look at enough charts, measure the moves, you’ll find it’s true most of the time. Tops tend to be “round”, bottoms tend to be “V” shaped. 

Given this reality, shouldn’t your exit rules for shorting be different than for going long? 

It’s rare for a trading strategy to be symmetrical and have both longs and shorts perform equally well using the same rules. Review yours and consider if you’re asymmetrical (enough).

Our team day-trades multiple strategies with edge in a live online environment. No one trades all the strategies, but they have a working knowledge of each and choose which fits their personality. Join our team, learn the strategies, and trade live with us daily for 30 days. Money back if you’re not blown away! Learn more here.

Trade Fearlessly,

Mike Siewruk

P.S.  Feel free to pass this along to your trading buddies. Share in the wealth!