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Today’s Best S&P Futures Turning Points: This strategy remains on hold.
The World Index: (+100/-100) drops from +36 to -7 with sentiment mixed and volatility low.
Catalysts: Home Price Index @ 9:00. Consumer Confidence & JOLTS Job Openings @ 10:00. MSFT/AMD earnings after the close.
Quick Tip: Good Risk Trick
You should write a check to… the market!
Well, not exactly (who writes checks anymore anyway?). This is about a risk management trick I learned from a great trader. I think it was Larry Williams.
First, never risk more than you can afford to lose both financially and psychologically. Be honest with yourself. If you’re not, you will definitely find out when the losing streak happens. So, take that “per trade” risk and multiply by 4 or 5 to get closer to reality.
Second, and this was Larry's trick… when you enter the trade visualize you just wrote a check to Mr. Market for the stop loss amount. It’s gone. Out of the account. You spent it.
The beauty of this “re-framing” is that you will never feel emotional about the loss. You didn’t lose anything. You spent it, just like you do every day for all the other things in life.
Now, if you end up getting out at breakeven after trail-stopping then you got a refund! How cool is that? Refunds are great!
Of course, if the trade is a winner, you not only get a refund, but you earn a handsome return. Start writing checks!
Not comfortable with your strategy yet? Our Swing Trading team uses unusual options trades and Insider buys for candidate selection. These are setups with considerable evidence from thousands of trades. We use a tool that makes this incredibly easy. Watch the demo here. No disappointments!
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to pass this along to your trading buddies. Share in the wealth!
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