Friday’s Results: Neither suggested level triggered.
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. At times you will need to act the roles of CEO, CFO, and Trader.
The CEO creates the vision then ensures it becomes a reality. You are the author of the trading plan, documentation, and review processes. You are not mired in day-to-day performance. Your focus is on long term growth and goal attainment. Spend some time developing a written vision statement and goals (within your trade plan). Read them frequently when you’re wearing your CEO “hat” and especially when you’re facing performance challenges. This is great work to perform on the weekend, free from distraction of your other “hats.”
The CFO manages the money. Profits and losses. With trading this can be a daily job. The CFO mindset is critical during the documentation and review process. The output is more than numbers on a spreadsheet and tax returns. You’re analyzing the strategies to find improved “edge” in the trading rules and hand them to the Trader for execution. The CFO is objective and unemotional.
The Trader is the low-level employee! You are solely responsible for completing trade execution without concern for results. Your “policy manual” is the trade plan and edge documents handed down by the senior executives.
OK… I know this sounds like a version of multiple personality disorder but if you have the correct mindset for each task and take the responsibility of each “employee” seriously, your vision and goals will manifest.
Here’s a great free mini-course, Ultimate Trade Plan, that will help you clarify and organize your trading “business.” Click here for instant access.
Today’s Best S&P Turning Points: (Same as Friday).
Sell 4292.50 stop 4297.50.
Buy 4093.50 stop 4087.75.
P.S. Did you know there are specific tools and formulas you can use to change your personal psychology about trading to improve your results? Learn how to change your unwanted behavior here.