How To Trade Better This Week

THE WEEK

Recovering from major surgery is never fun.  I couldn’t have asked for a more advantageous Market look while I focused on getting back to 100%.  It was a Market with no drama and traveling sideways.  It was a surprising pattern considering the global events playing out in the Middle East and in our own political arena.  This is a snapshot of the SPY from last week.

LOOKING AHEAD

I think our VERY quiet Market is coming to an end this week.  The major economic announcements for September’s figures will start being released this next week:  The CPI on Thursday and the PPI on Friday.  Both of these releases happen prior to the Market opening by an hour but the increased trading volume and herd reaction will affect your trades in place.  Adding to the drama the minutes from last month’s FOMC meeting will be released on Wednesday.  As students of the Market, we all know what the decisions were and why.  But the funny thing is there is usually a reaction to the release.  One of the mysteries of life.  

The other thing that makes anticipating the Market trend difficult is the price/action has been butting its head against a 52-week high for several weeks.  It will take volume to bust through which the economic announcements may provide.  Be on your toes Thursday and Friday.

HOW AM I DOING?

On Thursday’s webinar I discussed a disaster plan and why it was necessary.  A lot of you sent very thoughtful emails saying you really appreciated the thought process and plan details.  Using the plan framework, you told me you were going to start your own weekly plan.

My disaster plan revolved around  going into major surgery and not being able to trade while I recovered.  My detailed plan had me exiting most of my trades.  I used GTC orders so I was able to exit with excellent profits.  GTC stands for Good Till Canceled.  You calculate your maximum profit and place orders to capture that profit as the price/action changes day-to-day.  My plan worked well because there was no Market drama and because of our friend THETA (time decay).  If it was a drama Market, the plan had my sister stepping up and with Greg’s help working the trades to profit.  Note:  My sister is not a trader.  If I said buy a PUT, I would get a blank stare from her.

This Thursday’s Webinar is going to be a lot of fun!

We are going to discuss and dissect Market phrases and myths you hear all the time.  I have my list prepared.

Here’s more fun.  You can win a $25 Amazon Gift Certificate if you come up with one of these gems I have got on my list.  Just drop your gem in the chat area as the Webinar starts.