Results of Wednesday’s Best S&P Turning Points: Neither suggested level triggered. They remain active today.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3811.00 stop 3806.75. Short 3902.25 stop 3908.00.
The World Sentiment Index: (+100/-100) remains at +50 with most major world markets bullish. Historically the close was higher than the open 46% of the time.
Catalysts: International Trade & Jobless Claims @ 8:30. EIA Petroleum Status Report @ 11:00.
Quick Tip: Expectations vs. 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 weeks on end 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 what were decent returns didn’t make sense to me. I wanted to find the next killer, big-money strategy. I churned my account and lost for quite a while. Eventually I found “reality.”
Enjoy the big runners, days, weeks, and months but keep grounded.
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