Edition 677 - June 2, 2017
Chart Scan with Commentary - Decisions, Decisions
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
The day the arrow is pointing to was a Friday and it created a very nice Traders Trick Entry to go long on Monday, one tick above Friday’s high. During the Sunday/Monday night prices traded as you see them above. Should you leave the TTE in place, or should you get out? I opted to leave my order in place at 1252.90. My reasons: 1) I anticipated a follow-through of the momentum begun on Friday. 2) The TTE in this instance offers a very low risk trade. I use a tight protective stop in the event I’m wrong.
The chart below shows what happened on Monday. Prices reached 1255.90, or $300 per contract, more than enough for a profitable scalp trade. Since I was scalping, I was all in and all out at 1255.90. Will gold prices move higher? Should I have stayed in the trade to see? Not if I was scalping. When I’m scalping I take what I can get and leave the rest for someone else. There are plenty of trades to be had, you simply have to look for them.
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© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Trading Article - More About Losses
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Developer of Instant Income Guaranteed
How should you feel about losses? I once read somewhere that you are supposed to love losses. Does that make sense to you? It doesn't to me.
The worst aspect of losing is that it tends to create pessimism. Traders should feel bad when they lose money only if they fought the market trend, or violated their own trading strategies. The best traders have a healthy "so what, big deal!" attitude that maintains a sense of humor about losses. There is no reason to feel bad about losses if the trading discipline was correctly used. On the other hand, there is no reason to learn to love them either.
Analyze losses, learn from them, and then let them go; move on, that's the best thing to do.
Understanding man's relationship to time is one of life's most important challenges. When man becomes free of time's constraints, he lives life to the fullest and achieves goals on his own terms. Pessimism traps traders in the past, destroys their present, and robs them of the future. Imagine a world without time where the thought of death is not a finality of existence. If money were not the reason for your work-related behavior, then who are you? Where are you and what are you doing? Who shares this existence with you? In the philosophical sense, man creates himself and his existence when he takes responsibility for his actions and his time. Think how any individuals create order, structure, and discipline in their lives. How will you allow a trading loss today affect your life five years from today?
Thinking the wrong way can become self-fulfilling. The trouble with self-fulfillment is that many people have a self-destructive streak. Accident-prone drivers keep destroying their cars, and self-destructive traders keep destroying their accounts. Markets offer unlimited opportunities for self-sabotage, as well as for self-fulfillment. Acting out your internal conflicts in the marketplace is a very expensive proposition.
Traders who are not at peace with themselves often try to fulfill their contradictory wishes in the market. If you do not know where you are going, you will wind up somewhere you never wanted to be.
Every business has losses. I cannot think of any that don't. Shoplifting, embezzlement, internal pilferage, lawsuits, bad debts, spoilage, etc., I'm sure you can think of even more. You name it and businesses have one or more of the many ways to experience losses. Most businesses expect and accept such losses as part of doing business. Why, then, is it such a big deal when you have a loss in trading? If you know the answer to that, please let me know.
The way I handle a loss is this: I examine it, make every attempt to learn from it, and ascertain whether I had the loss by straying from my trading plan. If I have strayed, I reinforce my resolve to stick with my plan. If I have not strayed, then I learn from it what I can, and shrug it off as a cost of business. It is not an expense, it is a cost, and if you don't know the difference you need to take a course or read a book on the basics of accounting.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
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Philippe Gautier: Administration and New Developments
Developer: Joe Ross
On 8th May 2017, we gave our IIG subscribers the following trade on Garmin Ltd (GRMN). We decided to sell price insurance as follows:
- On 9th May 2017, we tried to sell to open GRMN Jun 16 2017 47.5P @ $0.24-$0.26; some subscribers were filled but I decided not to accept less than $0.26 and was not filled on that day.
- On 18th May 2017, I sold to open GRMN Jun 16, 2017 47.5P @ $0.32 or $32 per option sold on a Good Till Cancelled order.
- On 26th May 2017, we bought to close GRMN Jun 16, 2017 47.5P @ $0.07, after 8 days in the trade (or longer for those who entered on 18th May 2017), for quick premium compounding.
Profit: $25 per option
Margin: $950
Return on Margin Annualized: 120.07%
We have also added new types of trades for our IIG daily guidance since 2016, "no loss" propositions with unlimited upside potential, still using other people's money to trade..
Philippe
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© by Joe Ross and Philippe Gautier. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Blog Post - Emotions with Winning and Losing
by Professional Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and
Editor of Traders Notebook Complete and Traders Notebook Outrights
What kinds of emotions go with winning and losing? Read more.
© by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
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Trading Error: Averaging into a Losing Position
by Professional Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and
Creator of Ambush Trading Method, Ambush Signals, and AlgoStrats.com
In this video, Marco talks about one of the most common, and also one of the most deadly mistakes traders can make, and that's averaging into a losing position. He also gives you some insights as to why this is so tempting, and shows you why you should avoid it at all costs.
If you should you have any questions, don't hesitate to send me an email, This email address is being protected from spambots. You need JavaScript enabled to view it..
Happy Trading!
Marco
© by Marco Mayer. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
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