Trade Aptitude

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

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

The World Index: (+100/-100) eases from +50 to +36 with most major world markets mildly Bullish. 

Catalysts: PPI @ 8:30. UofM Consumer Sentiment @ 10:00. Earnings starts with big banks. 

Quick Tip: Resilience 

Baseball great Harmon Killebrew said, “The most important athletic ability is the talent to comeback from behind.” True in sports, true in business, true in trading. 

The great come-back athletes were different than their peers. They knew there would be setbacks. They thought in advance how to handle them. They didn’t get emotional. They snapped to attention and executed their plan. 

Traders have losing streaks. Can’t avoid them. 

Are you reactive or proactive? What’s your comeback plan? 

Here’s what works for me: Let’s say I have three losers in a row day trading. I take a vigorous walk not thinking at all about trading. This simple action is like an eraser in my head. I come back in 45 minutes motivated and disciplined. 

My plan for an extended losing streak, a drawdown over a few days, is different. With this I carefully review the entire history of the strategy results off-market hours. I look for similar results, how long they lasted, how much was lost. With this data you can adjust your risk, size, and/or frequency. You can also have a “halt strategy” rule. 

Everyone is different so develop and practice your own plan.

If you’re trading stocks and/or options, you should watch this training session I recorded recently. I demonstrated these two leading indicators of stock price movement that are unique enough to get you a solid edge. Get instant access here: Stock/Options swing traders.

Trade Fearlessly,

Mike Siewruk

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