Trade Aptitude

Results of Thursday’s Best S&P Futures Turning Points: Neither trade triggered, and the levels remain on the chart.

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

Buy 4228.50 stop 4223.25. Short 4357.50 stop 4363.25.

The World Index: (+100/-100) remains at +42 with all major world markets mildly Bullish. China still closed for holiday. 

Catalysts: Non-Farm Payrolls @ 8:30. Expect volatility. 

Quick Tip: Fold More Often

There are many similarities between trading and poker. Larry Phillips, in his book Zen and the Art of Poker, starts in chapter 1 telling you to fold more often. Wait for the best cards. Be patient. 

Doesn’t sound too exciting, does it? In fact, most gamblers would run for the door looking for action elsewhere. 

Successful trading, like poker, isn’t about excitement. It’s about winning over the long haul. 

Last night my friend Michael told me how he mastered his over-trading demon (which obviously led to plenty of losing sessions). He was invited to a poker game to see a long-time friend who’d been out of touch. Michael is not a gambler and had never played poker before. So, he figured he’d cram some poker knowledge in to hopefully not lose his shirt. He read Zen and the Art of Poker. 

That first chapter, Fold More Often, was his “aha” moment. He played in the game that night but only actually bet on a few hands. He sat for hours doing nothing. He quadrupled his money. And that’s when it occurred to him how to beat his over-trading problem. 

He changed his trading mindset. Instead of expecting to trade all day he decided to limit himself to one trade each day, looking for only the best setup. With about 20 trading days a month, he figured he’d be passing or losing a little on most of the days. But the few winners would net out to make his monthly goal. I’ve never seen him so calm and Zen talking about his trading before!

You may not want or need to limit yourself to one trade setup a day. But the concept of disqualifying setups and waiting for the best is still valid. 

Are you satisfied with your discipline while 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!

Trade Fearlessly,

Mike Siewruk

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