Trade Aptitude

Results of Wednesday’s Best S&P Futures Turning Points: No levels suggested. 

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

Buy 5238.00 stop 5232.25. Short 5233.00 stop 5238.75 if prices falls below and retraces to entry. 

The World Index: (+100/-100) jumps from -13 to +25 with most major world markets mildly Bullish with low volatility. 

Catalysts: PPI, Retail Sales & Jobless Claims @ 8:30. 

Quick Tip: Which Market? 

The word “market” can mean asset class: stock market, commodities market, currency market, etc. 

It can also mean “condition:” trending market, ranging market. 

Your strategy rules should be customized to a market condition. No strategy performs well in all market conditions. 

It’s commonly said that markets trend around 30% of the time. That leaves 70% for range-bound conditions. 

Trending markets offer larger profit opportunities. When you catch a trend it can persist for quite some time. However, you’ll have more losing trades when whipsaws occur. 

Range-bound markets offer more winning opportunities. As price moves back and forth from support to resistance you can capture more but smaller winning trades. 

Which do you prefer? This is important because your trading style needs to resonate with your personality. You should like it. It should be fun not work. 

The best way I’ve discovered to find your preference is to trade each style for a while. Do it in simulation mode. Do it through the different market conditions. This might take time but the result, finding your style, is the starting point of a successful trading career. 

Bonus: You may find you enjoy both. Now your challenge becomes recognizing the change in market conditions. That should be fun, too. If not pick your favorite strategy and just trade that.

Tired of trading alone? Join our team. We trade multiple strategies with edge in a live market every day. Click here for details and a special offer. 

Trade Fearlessly,

Mike Siewruk

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