75 and bulls are still alive
After the markets tested 75 at the open and held, it rallied to the psychology area. Profit taking ensued as the market pulled back to support in the afternoon.
ScalpersÂ against the trend were finally right, but had to endure a number of stop outs first at a few logical areas.
Secret code traders had a big edge on the pullback, and made profits in both directions.
Position traders have not had it easy lately, as markets have struggled to reconcile themselves with the 50 day moving average.
Markets fluctuate; they go up, they go down, that’s all I know.
Mental toughness is required for this business. If you are in the right direction for the trade there is nothing to do but manage the trade. If you are flat or in against the stream, the decisions are more complex. Where to enter, where to take the stop.
Re-entry trades are also part of the game. With profits, we have more alternatives, not to mention a more positive attitude. If we have recently been stopped out, we need to have a mechanism in place to make sure we are not “revenge trading”. Sometimes there are excellent opportunities for re-entry; other times we just get it wrong and need to admit that our timing and judgement is incorrect.
In those times when we are out of synch, remember the goal is to live to fight another day.