Trade Aptitude
Results of Tuesday’s Best S&P Futures Turning Points: Shorting 4407.50 stopped out.
Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets):
Buy 4387.00 stop 4382.25. Short 4434.25 stop 4438.50.
The World Sentiment Index: (+100/-100) rises from +21 to +29 in a world of mixed sentiment and low volatility.
Catalysts: International Trade @8:30. Powell speaks @ 9:30. Crude Oil Inventories @ 10:30.
Quick Tip: Change Your Mind
Part of your morning routine should be researching the markets you trade for trends, volatility, and catalysts in the upcoming session. You want context.
The other day all the evidence pointed to a down S&P. I was convinced short was the first signal our strategies would offer. The market opened and strong buying momentum emerged. The first signal offered was long and without further consideration I took the trade. Small winner but positive, nonetheless.
Flexibility is important in trading, but how can we “exercise” this trait so that its second nature?
I asked ChatGPT for some ideas. The response was 10 specific actions, many like “Be Open-minded” were expected. The most potent answer was something I’ve read about in my studies before, and it bears repeating: Avoid Confirmation Bias.
Confirmation bias is simply our tendency to favor information that confirms our beliefs. We might ignore what is really happening and in our effort to “be right” we miss opportunities. To overcome this, seek out differing viewpoints and evidence and be open to change.
Easier said than done for many. Since we trade as a team getting differing views is constant. I’ve found this to be great training to eliminate bias and increase performance.
Trade Fearlessly,
Mike Siewruk
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