Trade Aptitude

Today’s Best S&P Futures Turning Points: This strategy remains on hold but is improving during the Globex session, not the day session. 

The World Index: (+100/-100) eases from +36 to +21 with sentiment mixed. 

Catalysts: Durable Goods orders @ 8:30.  Dallas Fed MFG Index @ 10:30. 

Welcome to Poker Week! 

There are plenty of similarities between trading and poker. For example, both require tremendous discipline and superb risk management. 

One excellent book every trader should read is Zen and the Art of Poker by Larry Phillips. This week’s blog is dedicated to 5 key lessons from the book. Enjoy!

Lesson #1: Fold More Often

The first thing you’ll learn to become a winning poker player is this: Fold more often. Wait for the best cards. Be patient. 

Doesn’t sound too exciting, does it? In fact, most gamblers would run for the door looking for action elsewhere. 

Successful trading, like poker, isn’t about excitement. It’s about winning over the long haul. 

A while back my friend Michael told me how he mastered his over-trading demon (which obviously led to plenty of losing sessions). 

He was invited to a poker game to see a long-time friend who’d been out of touch. Michael is not a gambler and had never played poker before. So, he figured he’d cram some poker knowledge in to hopefully not lose his shirt. He read Zen and the Art of Poker. 

The first chapter, Fold More Often, was his “aha” moment. He played in the game that night but only bet on a few hands. He sat for hours doing nothing. He quadrupled his money. And that’s when it occurred to him how to beat his over-trading problem. 

He changed his trading mindset. Instead of expecting to trade all day he decided to limit himself to one trade each day, looking for only the best setup. With about 20 trading days a month, he figured he’d be passing or losing a little on most of the days. But the few winners would net-out to make his monthly goal. I’ve never seen him so calm and Zen talking about his trading before!

You may not want or need to limit yourself to one trade setup a day. But the concept of disqualifying setups and waiting for the best is still valid.

Our trading teams focus on day trading futures and swing trading options. Maybe you'll fit right in. You can try either or both risk-free. 

Trade Fearlessly,

Mike Siewruk

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