What's Harder? by Trade Aptitude
Yesterday’s results: No trades suggested.
Today’s Best S&P Futures Turning Points: Buy 6098.25 stop 6094.25. Short 6095.00 stop 6099.00 if price retraces up from below.
The World Index: (+100/-100) lifts from -29 to -14 with sentiment mixed on low volatility.
Catalysts: Retail Sales @ 8:30. Capacity Utilization & Industrial Production @ 9:15. Housing Market Index @ 10:00. 20-Year Bond Auction @ 13:00.
Quick Tip: What’s Harder?
Think for a moment before you answer this question. Do you find it harder to take a loss or a profit?
The answer says a lot about your trade plan, style, trading psychology, and what you need to work on.
If your answer was a loss, then your risk management plan needs help. You might be trading the wrong strategy, possibly one with more losers than you can accept or large losers.
If your answer was a profit, then your risk management is fine, but your open trade management needs work. You might suffer from FOMO.
If your answer was neither. You’ve arrived at a high level of trading skills. Congratulations!
I recall early in my trading career I was bothered by the losses. After adjusting my trade risk to fit my risk tolerance I saw improvement in confidence and results.
But then I was bothered by the profit decision. How much was enough? I’d be disappointed at how much I was leaving on the table by choosing the exit in advance.
Eventually, I overcame the greed and FOMO by focusing on open trade management and having abundance in trade opportunities. There was always another trade around the corner. Why should I care about what I didn’t get?
I’ve found this sequence is common with other traders. Be honest with yourself and start working on the fix for where you’re at.
Our trading teams focus on multiple strategies for day trading futures and high-probability candidates for swing trading options. You can try either or both risk-free. Join us.
Trade fearlessly,
Mike Siewruk
P.S. Share in the wealth! Pass this blog along to your trading buddies.