Trade Aptitude
Results of Wednesday’s Best S&P Futures Turning Points: Neither trade suggestion triggered on another narrow range day.
Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets):
Buy 4431.25 stop 4427.25. Short 4482.75 stop 4486.50.
The World Sentiment Index: (+100/-100) falls from -57 to -79 with all major world markets extended their Bearish tone from yesterday.
Catalysts: OPEC meetings (lowering production). ADP Employment Report @ 8:15. Jobless Claims @ 8:30. ISM Services PMI @ 10:00. Crude Oil Inventories @ 11:00.
Quick Tip: Expectations
“What are you struggling with?” was the question I asked a group of traders. One woman said she had expectation challenges. She felt she needed to acknowledge that every trade cannot be a home run, or “10 to 1” as she phrased it.
I respect her self-awareness. Expectations is not a commonly voiced trading challenge. But it is real. You can expect too much and foster disappointment. You can expect too little and minimize your profits. Neither view is healthy for your ultimate results.
If you are documenting all the trades of your strategies (taken or not) then you will have hard evidence and know what to expect most of the time. The challenge arises when the market changes character and you are still “expecting” something different to happen.
In “The Disciplined Trader” by the late Mark Douglas, he identifies nine critical trading skills.
#6 - Learning how to let the market tell you how much is enough, instead of assessing the potential from your personal value system of how much is enough.
This seems simple. Look at the charts and target a reversal pattern or level for your profit target. Trail-stop. Scale out. All valid exits.
But afterward you get to see how much profit you didn’t get, which is destructive behavior. As Douglas said, you need to learn this skill.
Trade Fearlessly,
Mike Siewruk
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