Trade Aptitude

Results of Wednesday’s Best S&P Turning Points: No trades. 

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

Buy 3929.00 stop 3923.25. Short 4074.50 stop 4079.50

Globex View: Trending down.

The World Sentiment Index: (+100/-100) PLUMMETS from zero to -64 with most major world markets Bearish on rising volatility. Historically, price will close higher then the open 54% of the time.  

Catalysts: Jobless Claims, Philly Fed MFG, Empire MFG & Retail Sales @ 8:30. Industrial Production @ 9:15. Business Inventories @ 10:00. 

Quick Tip: Hardest Lesson

If you’re a discretionary trader intuitively making entry and exit decisions AND you’re successful, congratulations! You are a rare breed. It’s not that discretionary trading doesn’t work, it’s that to succeed takes years to hone the skills. 

This leaves rule-based trading the best alternative for developing trading skills and success for the vast majority.

It seems so simple. Find a proven strategy with edge. Follow the rules. What can go wrong? 

Here’s the hardest lesson you need to learn: You think you know what’s going to happen. 

You remember prior trades that were winners and losers in certain market conditions, and you violate the rules of a perfectly good trade plan because you think you know what’s going to happen. 

This is a natural human phenomenon. But it usually ruins your results. I don’t recall the author, but I clearly remember the quote: “The hardest trades to take usually turn out to be the best.” 

Thinking we know what’s going to happen is dangerous. It stems from not wanting to lose. Wanting to win.

We shouldn’t care about the outcome. Win or lose, no worries. Trading success is never the result of ONE trade. It’s the entire series of trades over time and in varying market conditions. This means we should focus on trade execution and risk management, not outcome. 

Of course, you need strategies with edge. Not caring about outcome and following losing rules will blow up your trading account. Fast. 

If you already have good strategies and you’re still struggling, then you need to change your behavior. Click here for the solution. 

Trade Fearlessly,

Mike Siewruk 

P.S. Feel free to share this blog with all your trading buddies.