Trade Aptitude

Results of Tuesday’s Best S&P Futures Turning Points: Buying 5097.00 stopped out. 

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

Buy 5046.75 stop 5042.75. Short 5138.25 stop 5143.00. 

The World Index: (+100/-100) inverts from -31 to +31 with most major world markets mildly Bullish on low volatility. 

Catalysts: ADP Employment Change @ 8:15. JOLTS Job Openings & Powell @ 10:00. Crude Oil Inventories @ 10:30. Fed’s Daly @ 12:00. Beige Book @ 14:00. 

Quick Tip: Day Trade Exits

We’ve all heard the advice to “let your winners run.” For swing and position trades that is good advice. For day trades, not necessarily.

Why not? Your day trade has a time stop. You’re out at the session close. While it’s possible to get a runner all day long and into the close, the likelihood is price will move in impulses and corrections. Day trading is a noisy environment. Intraday trends and momentum come and go. 

Imagine you’re in a trade with multiple contracts (shares) and your initial profit targets have been met. Price continues in your direction, and you have an open position albeit smaller. You’re looking for a good exit not wanting to give up too much profit. 

Trail-stopping is one solution but that means giving back open profit. Forecasting the end of the move is a good idea. You won’t always be right but if you document your results compared to the trailing stop you might find that your open trade management skills are better!

The wide range candle/bar is a popular exit. Fast moves frequently expire and reverse rapidly. A reversal signal from another strategy can work well, too. Measured moves from prior impulses and corrections is yet another idea. Practice and document. You'll be glad you did. 

Tired of trading alone? Join our team. We trade multiple strategies with edge in a live market every day. Click here for details and a special offer. 

Trade Fearlessly,

Mike Siewruk

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