Trade Aptitude

psychology trade planning Jan 02, 2024

Results of Friday’s Best S&P Futures Turning Points: Shorting 4821.50 delivered 14.00 points to the buy level at 4807.50, which didn’t fare as well only offering a 4.25-point bounce. 

Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets): 

Buy 4807.50 stop 4802.25. Short 4821.50 stop 4827.25 if price closes below and retraces to fill. 

The World Index: (+100/-100) plummets from +21 to -58 with the major world markets Bearish on increasing volatility.   

Catalysts: PMI Final @ 9:45. 

Quick Tip: Expectations and Reality

People are impressionable. Sometimes that can be a problem. We can have great expectations that don’t match up with reality. A perfectly fine trading result can seem like a failure after experiencing a big win. 

Here’s an example. Let’s say the first time you traded the levels shared in this blog your first trade was a 40-point winner. 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 a while you might be a bit disappointed. But those are more the reality. The frequency of modest winners is much higher than the big runners. 

This happened to me when I started trading in the late 90’s. The strategy I found worked very well during the dot-com bubble. Easy money. Then the volatility vanished, and it turned into a loser. Time to search for a new approach. 

The problem was that my expectations were so high that trading other strategies for less returns didn’t make sense to me. I wanted to find the next killer, big-money strategy. I churned my account for a year and lost plenty. Eventually I understood “reality” and adjusted my expectations. 

Enjoy the big runners, days, weeks, and months but keep grounded.

Tired of trading alone?  Our team day-trades multiple strategies with edge in a live online environment. Join us, learn the strategies, and trade live with us daily for 30 days. Money back if you’re not blown away! 

Trade Fearlessly,

Mike Siewruk

P.S. Forward this blog to your trading buddies. Share in the wealth!


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