Hey friend,
It was an interesting contrast yesterday with the latest Services PMI data outperforming expectations but the Manufacturing PMI data underperforming.
This morning’s retail sales data also beat expectations thanks to higher auto and online purchases.
The Fed meets today – let’s see how the markets have been moving.
The Daily Direction
Note: All indexes except the Dow closed higher yesterday. However, they opened lower this morning, with the data disappointing Wall Street. No change in any index directions.
The Daily Nugget
If you don’t keep your losses in check, your trading account is sure to eventually be depleted.
The most exciting part about trading is the gains.
The boring part? Talking about keeping your losses in check through disciplined risk management.
And yet – if you don’t do the “boring” part…
You won’t even have the chance to enjoy the exciting gains.
Because the truth is, there is no strategy out there that can win 100% of the time.
There will always be some losses…
Meaning you have to keep them in check.
The moment they hit your predetermined stop loss – they should be cut ruthlessly and without emotion.
That’s why Head Trader Ross Givens always gives out a stop loss when making a recommendation…
And why, once a trade starts to run, he always makes sure to move stop losses up to breakeven.
That’s disciplined risk management in play.
Simple in theory – but harder in practice.
But if you can enact “stop loss discipline” – you’ll be way ahead of most traders.
It doesn’t take any special knowledge, just discipline.
As the end of the year approaches, it may be worth looking back at your trades to see if you didn’t follow through on any of these stop losses.
What happened to those trades?
And then next year – make a commitment to follow through on all your predetermined stop losses.
It may feel bad in the moment…
But in the long run, your trading account will be all the better for it.
The Traders Agency Team
