Trade Aptitude

Results of Monday’s Best S&P Futures Turning Points: Shorting 4546.25 only offered a 4.25-point scalp but the breakout offered a healthier 15 points favorable (see chart). 

Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets): 

Buy 4512 stop 4507.00. Short 4575.00 stop 4580.75.

The World Sentiment Index: (+100/-100) jumps from -50 to -7 in a world of mixed sentiment and low volatility. 

Catalysts: Retail Sales @ 8:30. Industrial Production @ 9:15. Housing Market Index @ 10:00. More bank earnings.

Quick Tip: Newbies Only Part 2

This is a multi-part process. If you didn’t read yesterday’s newsletter you can find it here.

Assuming you’re passionate about trading, recognize it will take time to develop the skills, and you’re committed to succeed, let’s expand on your time commitment and how that affects your next few decisions.

If you only have several hours a month to devote to your trading, you would be best suited for position trading. These are long-term trades that don’t require much attention. 

If you have several hours a week available, you could also swing trade. These are short-term trades that last from several days to weeks. They require attention daily. 

If you have several hours a day available, you could also day trade. These are trades that are opened and closed on the same day. They generally require constant attention, although there are some strategies for day trading that don’t. 

Now is the time to really think about these time commitments. Visualize how they will mesh with your current lifestyle. It’s easy to pick one and say to yourself “I can do that” but if you get this decision wrong, you’ll be wasting your time. You may find once you’re executing you don’t really like it and you’ll have to start the process over. You want every decision you’re making to resonate with your personality and lifestyle. 

Regardless of which you choose, you’ll be investing time in research, execution, and review. For each type of trading above, look at a calendar and block off the hours and days you’ll be performing each task.

For example, in order of time required, position trading requires the most research and little execution and review. Swing trading requires more execution and review. Day trading requires even more execution and review. This should help you fill your calendar and visualize the work. 

Tomorrow in Part 3 we’ll look at the money side. 

if you want help getting through the process from a team of skilled traders, join ours, learn several strategies, and watch us trade live daily.  Money back if you’re not blown away! Click here for details. 

Trade Fearlessly,

Mike Siewruk