Trade Aptitude

Results of Friday’s Best S&P Futures Turning Points: Neither suggested trade level triggered.

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

Buy 4499.00 stop 4495.50. Short 4543.75 stop 4548.50.

The World Index: (+100/-100) drops from +29 to -29 with most major world markets leaning Bearish. 

Catalysts: Factory Orders @ 10:00. USD jumps. 

Quick Tip: On Losing

I’m in a losing streak… and I’m unconcerned. 

Losing should not affect you financially or psychologically. You’ve determined how much you can lose before you react emotionally, and you’re disciplined to limit your loss to that number on every trade. If not, you’re destined to fail. 

That risk number can change though. You can increase it when you’re doing well and decrease it when not.

But what if you do get anxious or upset during a losing streak? Here’s a quick checklist you can use when that happens: 

1. Was the risk amount within your psychological tolerance? 

2. Did you follow the strategy rules precisely? 

3. Has the drawdown happened before? 

4. Was the prior drawdown equal or less? 

5. Are you feeling confident in your strategy edge? 

Stop when your answer is “no” and fix the problem. That may be easier said than done but until you do, moving on through the checklist is ineffective. 

If you get to the end and you’ve lost confidence in your strategy it’s time to halt the strategy. Continue to “paper trade” it, document results, and re-start live trading if/when it comes out of the drawdown. 

Our team day-trades multiple strategies tuned for varying market conditions.  Join our team, learn the strategies, and trade live with us daily for 30 days. Money back if you’re not blown away!

Trade Fearlessly,

Mike Siewruk