Trade Aptitude

Results of Tuesday’s Best S&P Futures Turning Points: Buying 4182.00 stopped out. 

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

Buy 4118.25 stop 4115.25. Short 4192.25 stop 4196.50. 

The World Sentiment Index: (+100/-100) drops from -50 to -86 with all major world markets very Bearish. Contrarian Alert: Historically, price closed higher from the open 57% of the time.

Catalysts: Yellen speaks @ 10:05. Crude Oil Inventories @ 10:30. FOMC Meeting Minutes @ 14:00. Debt ceiling talks stall. Risk off worldwide. 

Quick Tip: Short Targets

The world is bearish today due to the impasse on debt ceiling talks. You’ll probably be leaning to the short side today. 

Successful traders look for asymmetrical trades. These are trades where the risk is small compared to the potential gains. 

One application for asymmetry is frequently overlooked. Trade direction. Evidence shows that prices tend to fall faster than they rise. Why is this? Fear is more powerful than greed. 

Look at enough charts, measure the moves, you’ll find it’s true most of the time. Tops tend to be “round”, bottoms tend to be “V” shaped. 

Given this reality, shouldn’t your exit rules for shorting be different than for going long? Doesn’t it make sense to take profits somewhat quicker on plunges in price and give your longs during the melt-up more time?

It’s rare for a trading strategy to be symmetrical and have both longs and shorts perform equally well using the same rules. Review yours and consider if you’re asymmetrical (enough).

Our team day-trades multiple strategies with edge. Sharing exit ideas is huge benefit. 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 


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