Wednesday’s Blog Results: FOMC day paid out HUGE. Your suggested short @ 4443.00 caught the top of the session and ran for 98 points to the suggested buy at 4345.00 (which did see a 7-point bounce before stopping out). How much did you get?
Today’s Lesson: Expectations and reality.
People are impressionable. Sometimes that can be a problem. We can have great expectations that won’t match up with reality. A “good result” can look like a failure after a big win.
Here’s an example. Let’s say yesterday was the first time you traded the levels I share in this blog. Your first trade was a 98-point runner. Clearly you’d be ecstatic. What would your expectations be for future trade suggestions? If all you saw were 5 and 10-point winning trades for weeks on end you might be a bit disappointed. But those are more the reality.
This happened to me years ago when I started trading in the late 90’s. The strategy I found worked so well during the dot-com bubble that when volatility vanished it turned into a loser. My expectations were so high that trading other strategies for what were decent returns didn’t make sense to me. I wanted to find the next killer, big-money strategy. Needless to say, I churned my account and lost for quite a while. Eventually I found “reality.”
Enjoy the big days, weeks, months but keep grounded in reality.
Today’s Best S&P Futures Turning Points:
Short Level: Sell 4411.00 stop 4415.50.
Long Level: Buy 4208 stop 4203.50.
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