Trade Aptitude

Results of Thursday’s Best S&P Futures Turning Points: The short idea was filtered out during PCE release, as noted.

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 5117.50 stop 5121.00.

The World Index: (+100/-100) eases from +19 to +13 with most major world markets mildly Bullish. 

Catalysts: Final MFG PMI @ 9:45. ISM MFG PMI, ISM MFG Prices & Revised UoM Consumer Sentiment @ 10:00. Fed’s Waller @ 10:15, Bostic @ 10:50, Daly @ 13:30, Kugler @ 15:30. 

Quick Tip: Not Gambling

The uninformed frequently consider trading a form of gambling. But even the trader who knows there are similarities and differences doesn’t always focus on the keys to taking the “gamble” out of their trade plan. 

Consider these and audit your personal trade plan for compliance. 

1. Trading uses probabilities from carefully researched historical performance to ensure success. Gamblers use chance. 

2. Trading requires careful risk management including stop loss orders, diversification, and monitoring market conditions for rule changes. Gamblers rarely consider these tools. 

3. Trading styles vary based on the time horizon. Day, swing, and position traders understand the expectations of each and are not reactive to swings in short term results. Gamblers react to short term changes in their luck.

4. Traders know their success is largely dependent on their knowledge, skills, and personal psychology about winning and losing. Gamblers skip the time and effort it takes to master the game and depend on luck. 

5. Traders have realistic goals based on their strategy’s historical performance. Gamblers thrive on the “big win” and not on consistency.

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!