Risk/Reward by Trade Aptitude

Thursday’s results: No trades suggested.

Today’s Best S&P Futures Turning Points: Buy 6023.75 stop 6018.00. Short 6097.25 stop 6100.75. 

The World Index: (+100/-100) dips from +29 to +14 with sentiment mixed but leaning Bullish on falling volatility. 

Catalysts: International Trade @ 8:30. Crude Oil Inventories @ 13:00. 

Quick Tip: Risk/Reward

You must have a risk management section built into your trade plan. Without it you’ll fail at trading sooner or later. Many traders think their chosen stop loss order is their risk management plan. That’s not enough. Here’s a list of all the risks you need to cover in your plan: 

1. Trade

2. Psychological

3. Market

4. Liquidity

5. Strategy

6. Brokerage

This game suddenly looks riskier! How do you balance concern over all the risks with a focus on a positive expectation? Target asymmetrical results.

For example, our swing trading team executes a powerful strategy that had a phenomenal 2024. For most of the team, the number of losing trades outnumbered the winners. However, the strategy is designed to be asymmetrical, meaning the winners on average are much bigger than the losers. 

With an abundance of trade setups every week, we can be confident in future results at the same time not concerned about the small risk taken. 

Join us LIVE today, Friday December 27 @ 1PM ET for a complimentary training session on this very topic. Click here to register.

To your trading success,

Mike Siewruk

PS: Feel free to forward this invitation to your trading buddies. Share in the wealth!