Trade Aptitude
Results of Tuesday’s Best S&P Turning Points: Neither suggested trade triggered and remain on the chart.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3833.00 stop 3827.75. Short 3999.00 stop 4004.75.
The World Sentiment Index: (+100/-100) drops from -29 to -43 with Asia neutral/positive and the western world very Bearish on high volatility.
Catalysts: PPI, Retail Sales & Empire State MFG Index @ 8:30. Housing Market Index @ 10:00. Crude Oil Inventories @ 10:30. Risk off.
Quick Tip: Winning Streaks
It seems like we spend plenty of time discussing how to handle losing streaks and drawdowns. What about winning streaks?
Our intraday trend strategy is up 118.75 S&P points in the past two days with 10 winners and 3 losers. If you traded the Globex last night you banked another 71 points on a single trade.
Winning streaks can be a double-edged sword. On one hand, they can boost confidence and motivation, but on the other hand, they can lead to overconfidence and irrational decision-making.
It’s important to understand randomness and regression to the mean to manage your emotions.
In any series of trades, there will always be periods of winning and losing. This is due to the inherent randomness in the market. It's essential you realize that winning streaks are often temporary and should be seen as part of your overall performance.
Regression to the mean suggests that, over time, performance will likely move closer to the long-term average, regardless of whether it is above or below that average at a given point in time.
When you hit that joyful winning streak, remind yourself of these 4 key points:
1. Avoid overconfidence and emotional decision-making. Don’t make decisions based on excitement or euphoria.
2. Stick to your trading plan. Be consistent and disciplined.
3. Manage risk. Avoid taking on excessive risk just because you’re winning big.
4. Learn from your wins. Instead of being complacent, research your results for clues to refine your trade plan.
Our team day-trades multiple strategies with edge in a live online environment. Having other traders helping research the details of a winning streak can be priceless. Join our team, learn the strategies, and trade live with us daily for 30 days. Money back if you’re not blown away!
Trade Fearlessly,
Mike Siewruk