Trade Aptitude

trade planning Apr 18, 2024

Today’s Best S&P Futures Turning Points: Buy 5037.50 stop 5033.75. Short 5176.00 stop 5181.75.

Wednesday’s results: Buying 5046.75 missed filling by one tick and ran for 50 points.

The World Index: (+100/-100) improves from +36 to +43 with all major world markets modestly Bullish on low volatility.

Catalysts: Jobless Claims, Philly Fed Business Index @ 8:30. Fed’s Bowman & Williams @ 9:05/9:15, Existing Home Sales @ 10:00. Fed’s Bostic @ 11:00, Collins @ 12:00.

Quick Tip: Limit/Market

The buy yesterday missed by one tick. Heartbreaker.

I recall a while back one of the traders on our team told me didn’t limit himself to “precision” entries like I did. If he wanted in a trade he used a market order.

Entries are either limit or market. Limits are precise. You get the exact price you wanted. The downside is you may not get filled. Market orders always...

Trade Aptitude

trade planning Apr 17, 2024

Today’s Best S&P Futures Turning Points: Buy 5046.75 stop 5042.75. Short 5176.00 stop 5181.75.

Tuesday’s results: Neither trade triggered. The levels remain on the chart.

The World Index: (+100/-100) SOARS from -79 to +36 with most major world markets Bullish.

Catalysts: Crude Oil Inventories @ 10:30. Fed’s Beige Book @ 14:00. Maybe the IMF meetings.

Quick Tip: Change of Plan

Your trade plan probably started out simple. You had rules for entry, exit, risk, position size, candidate selection, and some filters for changing market conditions. The historical performance was positive. Great start.

Once you started live trading you likely encountered trade setups that didn’t make sense at the time. What to do? Grit your teeth and follow the rules or pass on the trade?

You feel compelled to be a rule-based trader, but your growing experience and skill level is telling you to not take the...

Trade Aptitude

personal development psychology trade planning Apr 16, 2024

Today’s Best S&P Futures Turning Points: Buy 5046.75 stop 5042.75. Short 5176.00 stop 5181.75.

Monday’s results: Buying 5169.50 ran for 16 points.

The World Index: (+100/-100) PLUMMETS from +24 to -79 with all major world markets very Bearish on higher volatility, S&P Futures up slightly. Contrarian alert: historically longs outperform at this level.

Catalysts: Housing Starts & Permits @ 8:30. Fed’s Jefferson @ 9:00. Industrial Production @ 9:15. Fed’s Williams @ 12:30, Barkin @ 13:00, Powell @ 13:15.

Quick Tip: Consistency

Having taught over 4000 traders in the past 16 years the goal I’ve heard most often is the desire for consistent profitability.

You know what profitability is but how do you define consistency in trading? Time certainly enters the definition. Short term traders would likely strive for weekly profitability. Long-term traders look to monthly, quarterly, or...

Trade Aptitude

options stock market swing trading trade planning Apr 11, 2024

Today’s Best S&P Futures Turning Points: Buy 5113.75 stop 5109.25. Short 5254.25 stop 5258.00.

Wednesday’s results: The buy level at 5231.50 was filtered out during the CPI news release volatility.

The World Index: (+100/-100) drops from +21 to -29 with most major world markets mildly Bearish or flat.

Catalysts: ECB Monetary Policy @ 8:15. PPI & Jobless Claims @ 8:30. ECB Press Conference, Fed’s Williams @ 8:45, Barkin @ 10:00, Collins @ 12:00, Bostic @ 13:30.

Quick Tip: Best Swing Trades

If you’re a swing trader of stocks or options you probably have some technical analysis rules for entry and exit. There are countless indicators and methods that work just fine.

One “edge” you might not have optimized yet is your stock/option selection method. Many traders will simply look for the high-volume candidates with appropriate volatility. That’s not enough. ...

Trade Aptitude

risk management trade planning Apr 10, 2024

Today’s Best S&P Futures Turning Points: Buy 5236.25 stop 5231.50. Short 5296.25 stop 5300.75 (filtered out for CPI announcement).

Tuesday’s results: Buying 5213.00 bounced for 6 points before stopping out one tick from the day session low.

The World Index: (+100/-100) gains from +7 to +21 with most major world markets leaning Bullish on low volatility.

Catalysts: CPI @ 8:30. Fed’s Bowman @ 8:45. Crude Oil Inventories @ 10:30. Fed’s Goolsbee @ 12:45. FOMC Minutes @ 14:00.

Quick Tip: Stop Trading?

hemAll trading strategies have drawdowns (a protracted losing streak). The challenge is trading through them. You can’t stop thinking that it may “never come back” or churn for an extended period. Then you get FOMO and think if you stop now it will roar back and you’ll miss the gain. Obviously, these thoughts are destructive. Don’t go there.

What you...

Trade Aptitude

personal development psychology trade planning Apr 09, 2024

Today’s Best S&P Futures Turning Points: Buy 5213.00 stop 5208.50. Short 5296.25 stop 5300.75.

Monday's Results: Neither trade triggered and remain on the chart.

The World Index: (+100/-100) eases from +14 to +7 with most major world markets flat or modestly Bullish.

Catalysts: Nothing on the economic calendar today.

Quick Tip: Think like a CEO.

You should manage your trading like a business. Even if you’re employed, think of it as a side business. You’re unlikely to have employees and that means you need to wear different “hats” to be successful. You’re the CEO, CFO, and Trader.

The CEO creates the vision then ensures it becomes a reality. He is the author of the trading plan, documentation, and review processes. He is not mired in day-to-day performance. His focus is on long term growth and goal attainment. Spend some time developing a written vision statement and goals...

Trade Aptitude

day trading futures options stock market trade planning Apr 08, 2024

Today’s Best S&P Futures Turning Points: Buy 5184.25 stop 5179.00. Short 5296.25 stop 5300.75.

Friday's Results: No trades triggered.

The World Index: (+100/-100) gains from -50 to +14 with most major world markets flat or modestly Bullish.

Catalysts: Nothing on the economic calendar today.

Quick Tip: Morning Routine

Preparing for your trading day is critical. You should have a routine you follow that includes the following:

Review Market News: Start by scanning major financial news outlets for any overnight developments that could impact the market. This includes economic data releases, geopolitical events, key corporate earnings reports, and news specific to the contracts you trade.

Check Futures and Overseas Markets: Assess how global markets are performing by checking futures contracts for major indices like the S&P 500, Dow Jones, and Nasdaq. Also, review how overseas markets, particularly in Asia and...

Trade Aptitude

day trading trade planning Apr 05, 2024

Results of Thursday’s Best S&P Futures Turning Points: Buying 5247.00 stopped out. The short idea never triggered.

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

Buy 5184.25 stop 5179.00. Short 5296.25 stop 5300.75.

The World Index: (+100/-100) plummets from +30 to -50 with all major world markets Bearish on rising volatility except the S&P Futures, modestly higher.

Catalysts: Non-Farm Payrolls @ 8:30. Fed’s Barkin @ 9:15, Bowman @ 12:15.

Quick Tip: Freight Trains

Teammate Curt is our in-house expert on 0DTE spreads on the SPXW. In the training documents he shared with the team there was one market condition he called the Freight Train.

As you can imagine, this defines a market that is strongly running in one direction. Like yesterday after the Fed’s Kashkari floats the idea of no interest rate cuts in 2024 and the market drops...

Trade Aptitude

trade planning Apr 04, 2024

Results of Wednesday’s Best S&P Futures Turning Points: No trade triggered.

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

Buy 5247.00 stop 5241.25. Short 5311.25 stop 5316.00.

The World Index: (+100/-100) reverses from -29 to +30 with the open world markets neutral to mildly Bullish (China, HK closed).

Catalysts: Jobless Claims @ 8:30. Fed Speakers: Barkin @ 12:15, Mester @ 14:00.

Quick Tip: Handling Streaks

Regardless of strategy, trading results move in waves much like price on a chart. Winning, losing, and flat streaks. Your trade plan should have rules for how you respond to these events.

Winning streak rules are simple if you follow a fixed percentage risk management plan. Let’s say your maximum risk per trade is 2% (common) of your trading account. As your winning streak continues the percentage of the growing account...

Trade Aptitude

trade planning Apr 03, 2024

Results of Tuesday’s Best S&P Futures Turning Points: Buying 5242.00 ended the plunge in price and offered a 9-point run before chopping sideways for the remainder of the day. The better trade was the breakout short from 4274.25 which ran 32.25 points to the turn.

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

Buy 5201.75 stop 5196.75. Short 5291.00 stop 5295.75.

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

Catalysts: ADP Employment Change @ 8:15. Fed’s Bostic @ 8:30, Bowman @ 9:45, Powell @ 12:10, Barr @ 13:10. Final Services PMI @ 9:45. ISM Services PMI @ 10:00. Crude Oil Inventories @ 10:30.

Quick Tip: Adjusting Targets

Your trading plan should have a basic set of entry and exit rules. Think of them as useful for “typical” market conditions. You can define typical by data...

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