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Results of Friday’s Best S&P Futures Turning Points: Buying 4557.50 caught the bottom of the session and ran for 20+ points to the close. 
Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets):
Buy 4521.00 stop 4517.00. Short 4597.50 stop 4602.25.
The World Index: (+100/-100) eases from -50 to -43 with most major world markets Bearish, especially Asia.
Catalysts: Final Services PMI @ 9:45. ISM Services PMI & JOLTS @ 10:00.
Quick Tip: Entry or Exit?
You can see from the chart that yesterday’s buy level was a great entry at what ended up the low of the day.
I didn’t take the trade. Why not? Because I was short all morning and used that level to exit my final contract. I used the entry signal from a different strategy as the exit signal from my primary strategy. In doing so I saved several points of open profit rather than wait for the trailing stop to fill.
You don’t have to trade multiple strategies to benefit from knowing them. Once you’re managing open profit you should be thinking about what other traders (strategies) might be ready to do that is against your direction. This is a critically important skill to develop.
Losses are the easiest aspect of trading to manage. You set your loss limit before entering and you’re done. Come what may.
Maximizing your winners by practicing solid open trade management will help you improve your results.
Why didn’t I reverse and go long instead of only ending the short trade? Great question. We have no idea if a trade is going to be a winner or a loser. I chose to bank my day early and do something else.
In hindsight I’m good with that decision. The level worked great and that gives me confidence in the strategy even though I wasn’t in the trade.
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Trade Fearlessly,
Mike Siewruk
P.S. Forward this blog to your trading buddies. Share in the wealth!
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