Today’s Best S&P Futures Turning Points: This strategy remains on hold but is rapidly improving. Stay tuned. 

The World Index: (+100/-100) rises from +21 to +36 with most major world markets Bullish. 

Catalysts: Building Permits/Housing Starts @ 8:30. UofM Consumer Sentiment @ 10:00. Fed’s Goolsbee @ 13:25. 

Quick Tip: Sell or Hold? 

Money messes with our heads. Until you get a grip on the emotions associated with winning and losing, you’re unlikely to succeed. 

Here’s a viewpoint I learned from one of the all-time great traders, Larry Williams: “More money is lost due to overstaying positions (greed) than exiting due to the fear of losing money.” 

Your fear is likely solved by using stops that lose an amount of money you can accept. Easy enough.

If Larry is correct, and I do believe he is, then greed is solved by pre-planned profit targets and open trade management. Planning targets is easy, open trade management requires skill and discipline. 

Here’s an example: The chart abo...

Today’s Best S&P Futures Turning Points: This strategy remains on hold but is rapidly improving. Stay tuned. 

The World Index: (+100/-100) rises from +14 to +21 with sentiment mildly Bullish and volatility lower.

Catalysts: Retail Sales, Jobless Claims, Empire State MFG Index, Philly Fed MFG Index, & Import/Export prices @ 8:30. Fed’s Musalem @ 9:10. Industrial Production @ 9:15. Business Inventories & Housing Market Index @ 10:00. Fed’s Harker @ 13:10. 

Quick Tip: This is a Business

If you treat your trading like a hobby or pastime you’ll lose money. If you treat it like a business, you have a much better chance for success. 

The expense side of trading is simple to analyze. You have losses, commissions, data fees, internet access, accounting, etc. 

The revenue side of trading is simple as well: your winning trades. But that’s only one revenue stream if you’re trading one strategy. 

How many successful businesses do you know of that have one product? One revenue stream? 

Diver...

Today’s Best S&P Futures Turning Points: This strategy remains on hold but is rapidly improving. Stay tuned. 

The World Index: (+100/-100) rises from +7 to +14 with sentiment mixed and volatility low.

Catalysts: CPI @ 8:30. Crude Oil Inventories @ 10:30.   

Quick Tip: Re-Starting

When you start trading you’re obviously attracted to the potential gains and entrepreneurial freedom from traditional work. But trading is not easy to master and losing in the beginning is normal. This is why learning to trade in simulation mode makes sense. 

Of course, simulated trading can only teach you execution. It doesn’t address the psychological challenges of winning, losing, being right, and being wrong. Still, it’s the best “first step.”

Fast forward to once you’re a profitable trader. You’ve experienced winning and losing but you’ve built the confidence to manage the losing streaks because they’ve come and gone before. 

Here’s a usually tough decision that can be hugely beneficial: During or ...

Today’s Best S&P Futures Turning Points: This strategy remains on hold.

The World Index: (+100/-100) eases from +21 to +7 with sentiment mixed and volatility lower.

Catalysts: PPI @ 8:30. Fed’s Bostic @ 13:15. Waiting on CPI tomorrow.  

Quick Tip: After You Exit

Hall of Fame baseball legend Ted Williams would have been an outstanding trader. When asked about his success he explained a method that all great traders use. 

He documented the details of every at-bat. 

Specifically, he separated the plate into different zones and calculated his batting average for each zone. Swinging at low pitches was not so productive. Swinging at high pitches directly over the plate was very productive!

Traders have far more details they can document than a few zones over the plate. Some data is obvious like time of day, volatility, trend, asset, etc. 

To truly excel documenting details about yourself will set you apart. Were you focused, rested, energetic, optimistic and confident? Or were you di...

Today’s Best S&P Futures Turning Points: This strategy remains on hold.

The World Index: (+100/-100) jumps from -50 to +43 with most of the world Bullish on falling volatility.  

Catalysts: Nothing on the economic calendar today. 

Quick Tip: Stay Open

If you’re always “right” then you’ll never be open minded enough to change for the better. Being flexible and open-minded to new ideas is a huge advantage in trading. 

I’m not saying you simply agree with every new idea you hear. I’m saying that when you’re presented with an intriguing idea (setup, rule, etc.) you owe it to yourself to investigate the value of it. And if you find improvement, then accept the change. 

I was told the great investor George Soros wrote in his book about a trade he took in the Japanese Yen. It ended up a monster winner. His first entry was short based on his analysis. It failed quickly so he doubled his size and went long. Just like that!

We are all going to be wrong or mistaken at times. The key to suc...

Today’s Best S&P Futures Turning Points: This strategy remains on hold.

The World Index: (+100/-100) plummets from +79 to -50 with renewed selling and sticky volatility. 

Catalysts: Jobless Claims @ 8:30. 30-Year Bond Auction @ 13:00. Fed’s Barkin @ 15:00. 

Quick Tip: Try Waiting 

Successful trading skills are very different in many cases than how we’ve been conditioned to believe and behave. We were all taught to work hard and smart to control the outcome of our efforts. In trading we cannot control whether we win or lose but we can control how much we lose. 

Some market conditions are more difficult than others to even control the losses! What’s the solution? 

Here’s some advice from arguably one of the best traders in history, Jim Rogers. 

He said “I just wait until there is money lying in the corner, and all I must do is go over there and pick it up. I do nothing in the meantime."

Who was taught this concept growing up? Did Dad ever say, “Do nothing?” Your teacher? Your bos...

Today’s Best S&P Futures Turning Points:This strategy remains on hold.

The World Index: (+100/-100) soars from -7 to +79 with all thoughts of the correction vanishing. 

Catalysts: Crude Oil Inventories @ 10:30. Fed’s Collins @ 12:00. 10-Year Bond Auction @ 13:00. 

Quick Tip: Change It

Popular trader psychologist and author Brett Steenbarger said, “The greatest enemy of change is routine.” 

I had to stop and think about this. Over the years I’ve learned that routines are healthy. They are habits and assuming they’re good for you, they’re important to have. I started a morning routine, a pre-trading routine, a midday routine, and a nighttime routine. 

So now I’m being advised to change all that? 

Not at all. Steenbarger was referring to the time you spend between your routines, in particular while trading. The pre-trading routine is important. Keep it. 

But don’t go on autopilot while trading. Be aware of changing market conditions. Listen to divergent viewpoints. Zoom out to the...

Today’s Best S&P Futures Turning Points: This strategy remains on hold.

The World Index: (+100/-100) soars from -100 to -7 with mixed world sentiment on stabler volatility. Tokyo +10%. 

Catalysts: Trade Balance @ 8:30. Dip buyers testing the water. 

Quick Tip: See the Big Picture

Traders can often get caught up in the day-to-day fluctuations of the market, much like people who live their lives without pausing to reflect. 

In Larry Wilson’s book, Play to Win: Choosing Growth Over Fear in Work and Life, he emphasizes the importance of stepping back and seeing the bigger picture to make better-informed decisions. 

For day traders, this means taking a break from the extreme volatility yesterday and understanding the cause(s). 

Wilson also teaches us about the two life orientations that you must choose between.

1. Play to win.

2. Playing not to lose. 

What’s the difference? 

People who have a positive attitude packed with a view of abundant opportunities that are willing to overc...

Today’s Best S&P Futures Turning Points: This strategy remains on hold.

The World Index: (+100/-100) drops from -86 to -100 with all major world markets very Bearish on massive volatility. 

Catalysts: Final Services PMI @ 9:45. ISM Services PMI @ 10:00. Global equities selloff accelerates. Tokyo enters Bear Market. 

Quick Tip: Down Fast

In its simplest form trading is nothing more than risking money to make money. You need to be a net winner. This will happen if your losses are kept “small” (that’s a relative word) and you have…

1. More winning than losing events and/or 

2. Larger winners than losers. 

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 can be more powerful than greed. 

Look at enough charts, measure the moves, you’ll find it’s true most ...