Trade Aptitude
Today’s Best S&P Futures Turning Points: Buy 5248.75 stop 5244.75. Short 5330.00 stop 5334.50.
Thursday’s results: Buying 5343.00 stopped out, shorting 5340.00 on the retracement ran to the close for 53.75 points.
The World Index: (+100/-100) plummets from +7 to -57 with most major world markets Bearish on rising volatility.
Catalysts: Durable Goods @ 8:30. Fed’s Waller @ 9:35. UofM Consumer Sentiment (Revised) @ 10:00.
Quick Tip: Compartmentalize
I’m re-printing a blog post today because I failed to apply this lesson yesterday and it cost me dearly. One of the traders on our team called me out on it. Accountability is one benefit of team trading.
Here’s the setup: you have a 401-K (long only) and you trade short term for income (long and short). Every morning you go through your routine which includes assessing two different time horizons:
1. The big picture. Trends on monthly and weekly charts. You WANT these up for your 401-K.
2. Today. Will it be a narrow or wide day? Up or down? What catalysts are evident? You don’t care about direction, just movement.
Do you see the challenge? For your bigger account you WANT the market to continue higher. For your trading account you’re willing to trade short, AGAINST what you really WANT.
You may not realize but you could have a confidence issue with your short-term trading. You’re in conflict. Heck, in a Bear Market your confidence issue switches to your investment account!
Think about this while trading short. If you have any angst then knowing the cause (your WANT) is the first step to “recovery.” Compartmentalize your feelings. Don’t think about your long-term account while trading short-term. With practice this confidence-killer fades away.
Tired of trading alone? Join our team. You can learn the strategies and trade live with us daily for 30 days. Money back if you’re not blown away! Take advantage of the final days of this promotional price.
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to pass this along to your trading buddies. Share in the wealth!