Trade Aptitude

Results of Wednesday’s Best S&P Futures Turning Points: The buy at 4885.00 only reversed for 5.25 points during the end of Powell’s Q&A. 

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

Buy 4835.25 stop 4829.50. Short 4909.75 stop 4913.75. 

The World Index: (+100/-100) rises from +6 to +19 with sentiment mixed and low volatility… except the BSE in India up over 8% the last two days. 

Catalysts: Jobless Claims @ 8:30. Final MFG PMI @ 9:45. ISM MFG PMI/Prices @ 10:00. 

Quick Tip: Exit Ideas   

I’ve heard real estate investors say that the money is made when you buy right. While that’s partially true In the markets, the liquidity and volatility we have that they don’t means the real money is made (or lost) in the exit, not the entry. 

Losses are easy. They’re pre-planned and acceptable before entry. 

Market conditions are important when choosing your profit targets. Is price moving fast or slow? Is the expected range wide or narrow? Is there a catalyst on the horizon that could impact price direction? 

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

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

2. Trailing stop loss based on present time volatility or price pivots. 

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

4. Wide range (extended) candle/bar. 

5. Opposing trade signal to reverse direction from a different strategy.

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.

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Trade Fearlessly,

Mike Siewruk

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