The Daily Market Forecast... Turn Losers into Winners
Tuesday’s Results: The suggested buy at 4237.50 stopped out.
Quick Tip: Turn Losers into Winners
There’s statistical and observable evidence that the population of “successful people” and “winning traders” is much smaller than the population of mediocre, losing, and failed traders.
If that’s the case, then the best lesson you could learn and the surest route to success in trading is to emulate the winners. Copy their successful actions.
Setting aside their actual strategy rules, which you may never be privy to, think about how they handle losses. They have them, too. The answer is almost always their attitude toward defeat and loss. They don’t commiserate, sulk, and quit. They carefully inspect those losses to determine how they can minimize or avoid them in the future. They get up after being knocked down. Every time.
Every loss, failure, or setback is a potential goldmine of a learning experience. The formula is simple but not easy to make a habit. You should do it, though.
- Did you follow all your rules? If so, it’s just a losing trade. Happens.
- If not, what did you do wrong? Document your error.
- Has the market changed? Is your strategy in harmony with the current conditions? Document your observations and “back test” if possible.
- Create a routine, system, or reminder to make sure you don’t commit the error again or ignore a changing market condition.
Defeat is only a state of mind. Recognize it and work to change it.
Today’s Best S&P Turning Points
Sell Short 4334.75 stop 4340.
Buy 4140.75 stop 4135.75.
Trade Fearlessly,
Mike Siewruk
P.S. If your strategies have proven edge and your results are spotty then you need to change your behavior. Click to learn how.