Trade Aptitude

Today’s Best S&P Futures Turning Points: This strategy remains on hold but is rapidly improving. Stay tuned. 

The World Index: (+100/-100) rises from +7 to +14 with sentiment mixed and volatility low.

Catalysts: CPI @ 8:30. Crude Oil Inventories @ 10:30.   

Quick Tip: Re-Starting

When you start trading you’re obviously attracted to the potential gains and entrepreneurial freedom from traditional work. But trading is not easy to master and losing in the beginning is normal. This is why learning to trade in simulation mode makes sense. 

Of course, simulated trading can only teach you execution. It doesn’t address the psychological challenges of winning, losing, being right, and being wrong. Still, it’s the best “first step.”

Fast forward to once you’re a profitable trader. You’ve experienced winning and losing but you’ve built the confidence to manage the losing streaks because they’ve come and gone before. 

Here’s a usually tough decision that can be hugely beneficial: During or after a losing streak “re-start” your trading with minimum size or simulation. You want to limit your losses to the bare minimum, if not eliminate them entirely in simulation mode. 

It’s a tough decision because you’re accustomed to trading a dollar amount that is meaningful to you. By dropping your size or moving to simulation mode you might feel like you’re back in first grade. That’s OK. Drop the ego. Save the money. Earn back your right to trade size by working through the drawdown without financial duress. 

Tired of trading alone?  We have skilled teams day-trading futures and swing trading options. Choose one and learn more. 

Trade Fearlessly,

Mike Siewruk

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