A SIMPLE APPROACH TO GAINING CONSISTENT RETURNS THAT ANYONE CAN FOLLOW. NO HYPE, NO BS, TRANSPARENCY DAY IN DAY OUT. 1 GOAL, TO MOVE TRADERS FROM BREAK EVEN/LOSERS TO CONSISTENT WINNERS. ITS NOT FANCY, JUST EFFECTIVE.
Today was another low volatility balance day. Balance days are highlighted by failed breakouts and breakdowns the resultant pushes back to the middle the range. The key for today was patients and doing less. The key opportunity came in the first move into the 192150- 1924 support resistance zone. While it took a bit of patience we were eventually able to garner two points out of the zone for those who of trailers to six points where available. The slow grind can make daytrading a very tough way to make a living right now. Any misstep can really put traders in a bind because of the lack of additional opportunity to recover from a losing trade. The key is to be patient and wait for the market to show you that it is moving well once again. I assure you this is normal behavior and two-sided markets will return. The key for daytraders is to be very selective on entries; dont over trade. The worst outcome can be that you dig a hole that requires days or weeks of good trading to recoup. Additionally, conserving mental capital is critical in markets that are giving few opportunities. If you can keep tossing a few chips on the stack every day while waiting for the range to expand you will be a very good position to capitalize when the two-sided market returns. I suggest that you not force your hand and simply trade what the market offers and stay grateful. It's not necessarily fun; it can be profitable. Sometimes trading is about surviving. Great traders know that and embrace it.
Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential