The S&P Market has been interesting this year. It has moved lower and lower, and will most likely move even lower. Today’s market analysis provides three possible scenarios of the market. The interesting part is seeing which path it will eventually take. Part of trading is being a detective, and we must always be ready for anything. We are only as good as our last trade after all.
Deciphering the market is only step 1. It is only after that when we begin to find our setups. With that said, our job is to discover where the market is going and jump on for the ride when we are able to. It is as simple as that, however, it is always easier said than done.
Everything in the world is easier said than done though. If it were ever easier to do than to say, trading would quit being so lucrative.
Monday is a US banking holiday, which means this is a shortened trading week. Tuesday will most likely be slow without much news. Wednesday, Thursday, and Friday have some nice news events, so expect volatility on these days.
S&P Market?
It isn’t whether we predict the market correctly ahead of time, but trade valid setups in real time that matters. As a beginning trader I thought I needed to do both to be successful. Then I realized that being wrong was a badge of honor. Let me explain this a bit more.
Wrong means bad in our society from an employee mentality. However, wrong in business doesn’t necessary mean bad. I can be wrong about a trade and still make money, but that comes with bad habits. I can be wrong about my analysis, but still trade a valid setup and make money. That brings good habits with it.
Basically, some things are not worth caring about. There is enough pressure in trading without us adding things. In coaching others, I try to touch upon this early on. It is important to know that we stress ourselves out more than anything else ever could.
How are you trading this week, and what are you looking for?