Trade Aptitude

risk management technical analysis trade planning May 08, 2024

Today’s Best S&P Futures Turning Points: Buy 5185.25 stop 5181.75. Short 5249.50 stop 5253.50.

Tuesday’s results: Neither trade triggered.

The World Index: (+100/-100) drops from +29 to -7 with Asia Bearish and the western world mildly Bullish.

Catalysts: Crude Inventories @ 10:30. Fed Speakers: Jefferson @ 11:00, Collins @ 11:45, Cook @ 13:30. 10-Year Note Auction @ 13:00.

Quick Tip: Fractals

One common rule in many trading strategies is to honor the trend from a higher time frame. If you’re day-trading a 5-minute chart, consider the 30-minute trend. If you’re swing trading a 60-minute chart, consider the daily trend.

There is more to be gained from this multiple time frame analysis.

Markets are fractal, meaning the price patterns on the chart repeat themselves in different time intervals. With this knowledge, here’s some ideas for gaining edge:

1. Entries...

Trade Aptitude

psychology risk management trade planning Apr 30, 2024

Today’s Best S&P Futures Turning Points: Buy 5082.75 stop 5078.25. Short 5176.00 stop 5181.75.

Monday’s results: Neither trade setup triggered.

The World Index: (+100/-100) plummets from +50 to -7 with mixed sentiment and lower volatility.

Catalysts: Employment Cost Index @ 8:30. Housing Price Index @ 9:00. Chicago PMI @ 9:45. Consumer Confidence @ 10:00. AMZN/AMD earnings after the close. Waiting on FOMC.

Quick Tip: Fix FOMO

Fear Of Missing Out (FOMO) in trading is the anxiety from the thought that others are winning while you’re on the sidelines.

While your trade plan has entry rules to follow that should eliminate FOMO, it’s hard not to feel it when an asset or the market is soaring or plunging and you’re idle.

FOMO breeds impulsivity and that usually means extra risk you shouldn’t accept.

Solve this by having an abundance mentality....

Trade Aptitude

personal development psychology risk management Apr 26, 2024

Today’s Best S&P Futures Turning Points: Buy 5082.75 stop 5078.25. Short 5176.00 stop 5181.75. Both are filtered out during the PCE news release @ 8:30 ET

Thursday’s results: The buy at 5048.50 was filtered out due to the GDP release volatility but did bounce for a quick 12-points.

The World Index: (+100/-100) soars from -14 to +64 with all major world markets firmly Bullish.

Catalysts: Core PCE Price Index, Personal Income & Spending @ 8:30. Revised UofM Consumer Sentiment @ 10:00. MSFT & GOOG earnings strong.

Quick Tip: Three Q’s

The best formulas for success are simple.

One of my favorites on decision making, which applies to trading very well, comes from Keith Cunningham, author of The Road Less Stupid:

1 – What is the upside?

2 – What is the downside?

3 – Can I live with the downside?

This ritual can be accomplished instantly with a little practice....

Trade Aptitude

psychology risk management Apr 24, 2024

Today’s Best S&P Futures Turning Points: Buy 5065.50 stop 5061.25. Short 5176.00 stop 5181.75.

Tuesday’s results: Neither trade triggered.

The World Index: (+100/-100) lifts from +43 to +64 with most major world markets Bullish on rising volatility.

Catalysts: Durable Goods @ 8:30. Crude Oil Inventories @ 10:30. 5-Year Treasury Auction @ 13:00. META & IBM earnings after close. TSLA up 12% pre-market.

Quick Tip: Being Wrong

We’re ingrained from childhood to be right. Rewards for being right, punishment for being wrong. In trading this is destructive thinking.

George Soros famously said: "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."

Of all the words I’ve read about winning and losing, being right or wrong, none sum up the situation better than this quote....

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...

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Trade Aptitude

Trade Aptitude

Trade Aptitude

Trade Aptitude

Trade Aptitude

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