Daily Futures Trading Update
Market Trend Advice from a Senior Market StrategistPosted 10/02/2017 9:34AM CT |
If you have read any of my past blogs, you know that I don’t generally give specific market advice like buy here or sell there. I prefer to educate the trader on how to manage money, protect a position, and share other common sense rules that will keep you around for the next trade. I am sure you have heard this one before, “the trend is your friend.” Counter trend traders can have success on a short-term basis using key support and resistance numbers. But what makes the counter trend trader successful is to know when to surrender to the trend. I am sorry to be repetitive, but the first thing to do after entering a new position is to place a stop loss. How much are you willing to risk on the trade? At what point will you surrender to the trend? Remember the market is always right. You have to be able to swallow a loss without it leaving a bitter taste in your mouth. If you do not protect your position and if you cannot face the fact that you are wrong the market, you will become like a deer in the headlights, staying with the loss so long that you miss other market opportunities. I have been witness to too many traders who refuse to exit a loss until the market forces them out. Be in control of your own destiny by setting your parameters from the beginning and sticking to your plan.