Trade Aptitude

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Tuesday’s results: This strategy is on hold... but is improving and likely out of the drawdown soon.

The World Index: (+100/-100) soars from -14 to +57 with all most major world markets very Bullish on rising volatility. 

Catalysts: ADP NFP Change @ 8:15. Jobless Claims & Trade Balance @ 8:30. Services PMI (Final) @ 9:45. ISM Services PMI @ 10:00. Crude Oil Inventories @ 10:30. FOMC Minutes @ 14:00. Futures market closes @ 1:15 ET for the holiday.

Quick Tip: Trend or Reversal?

You might be thinking that trading trends is safer than picking turning points. Many strategies focus on trading in the direction of a larger time frame trend. This makes sense and it generally works well. 

But it’s not necessarily “safer.”  Your initial priority is making sure your trade plan rule set has “edge,” meaning over time it’s profitable. After you have that the idea of “safe” becomes irrelevant. Trend following strategies have fewer large winning trades and frequent small losing trades. Reversal strategies have more moderate winning trades and small losing trades. Which appeals to you psychologically?

Here’s an even better idea: Learn both trend and reversal trading then use the correct strategy for the current market condition. Sounds simple but just like trading in general, not necessarily easy. Given enough research and statistical evidence, you can get an edge with your strategy choice decision.

We have two teams at The Daily Market Forecast. Futures day traders and Stock/Options swing traders. Click your style and learn more. 

Trade Fearlessly,

Mike Siewruk

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