Trade Aptitude
Results of Friday’s Best S&P Turning Points: The suggested short @ 3902.25 ran for 16-points.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3892.50 stop 3887.50. Short retracement up to 3913.00 stop 3918.75 on the breakout down.
The World Sentiment Index: (+100/-100) JUMPS from +21 to +50 with most major world markets mildly bullish with low volatility. Historically the close was higher than the open 46% of the time.
Catalysts: Nothing on the economic calendar. Worries about earnings season are spreading.
Quick Tip: Big Picture
Novice traders focus on how much they are winning and losing. Every entry, hoping for a winner. Every stopped exit, wishing it didn’t happen. This is incredibly destructive behavior. You’re teasing your emotions, begging them to overrule your common sense.
Here’s how to stop:
1. You have a rule-based trade plan (if not, get one or quit trading).
2. You’ve been documenting every trade opportunity including the trades you didn’t take.
3. Your database of evidence is rich, hundreds of trades, maybe thousands.
4. You know the win/loss percentage of your strategy.
5. You know the average winning and losing trade in dollars.
6. Calculate the net gain and divide by the total number of trades.
Now you know the amount of money you make every time you click to enter regardless of outcome. That is what your mind should be focused on when a trade setup triggers. Not winning or losing. But knowing with statistical relevance that over the long haul your strategy earns $X per trade.
For example, let’s say your average trade (winners and losers combined) netted $50, $100, you name it. If you were confident in that result, why would you focus on individual winners and losers? Why focus on how much you’re up or down today? Why ride the emotional roller-coaster? Re-focus. Think about the big picture
Tired of trading alone? Join our trading team. We use evidence-based rules across multiple strategies, and constantly research and test new ideas. Click here for a no-risk 30-day offer. You can make 2023 your best trading year ever!
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to share this blog with all your trading buddies.