Are you in touch with your trading emotions?
You need to be if you want to have a successful relationship with the markets. Doing so is a lot like learning how to be in a good partnership with a mate — something many of us are still trying to master! When it’s good, it’s really good and you’re on top of the world and congratulating yourself for your success. When it’s bad, it’s volatile and all you want to do is figure out how to get out — FAST — and still have some money left to move on!
Sound familiar? No, we’re not talking about your relationship. 🙂 But, yes, sometimes you do have to cut your losses and move on. However, we all know that sneaky little self-help adage that you take yourself with you wherever you go. So, if you never reflect on what got you to a tough spot in the first place, you’ll miss the opportunity to correct it in the future and recognize a good thing when you see it — and this holds true as much for markets as it does for marriage.
With respect to the markets, understanding what happened in the recent past, very often, allows us to see potential developing opportunities. This weekend’s Highlight Reel focuses on the E-Mini S&P on Tuesday, April 18. The previous day, Monday April 17, was a day dominated by the short-term momentum players. This assumption is made based upon Monday’s market-generated information:
- Attempted direction was up.
- Inventory was long on the close.
- Mechanical buying was taking place at prior 30 minute period lows.
- The late upward price spike further increased long inventory into the close.
- NYSE volume was low. The odds favored a short trade opportunity.
Further details are in the Highlight Reel #6 Supporting Document. The download link is below.
If you want to see true trading success, you need to enhance your relationship with the markets and understand that they are driven by emotion. You’ve got to be present for the markets, know when to just listen and know when it’s time to pull out the tool box, roll up your shirtsleeves and act decisively.
Successful short-term trading is enhanced when you are in touch with two sets of emotions: yours and the emotions of those you are competing against. The opportunity we’ve highlighted was created because short-term traders went from being too long to too short based upon their emotions. They wanted to get all there was to get from the day.
In our Highlight Reel and supporting document, you will have a chance to review how this played out and learn how to spot these opportunities in the future and enjoy a much more fruitful, steady and reciprocal relationship with the market.
Lastly, we hope you’ve enjoyed our J Dalton Trading Highlight Reel series. This is our last Highlight Reel as we get ready to start our Market Profile Mastery Series Course May 1. Jim's two daily reports and intraday, real-time chat start Monday, April 24! If you haven’t signed up, you can sign up here. If you have already registered, we can’t wait to work with you in class next week!J-Dalton-Trading-Highlight-Reel-#6-April-18,-2017-Supporting-Document