Today was horrible or I’d better call it a “black” day for the economy of the United States. Some strong news such as “CPI m/m”, “CPI y/y” and “Core CPI m/m” released at 8:30am EST. They reflected lots of more inflation in September, compared to August. Besides, as CPI is the price that consumers pay, not the finished production price for suppliers, it means consumers are not directly receiving the products and services they need, and some others are adding to the final price that consumers pay. This means uncontrolled markets and unhealthy distribution of products. In other words, it means economic corruption.
It scared the stock market’s big players and they sold. As a result the price crashed very strongly at 8:30am EST. Although the market recovered the big loss within the next several hours after the news release, strong inflation can keep the American stock market bearish for such a long time.
Today, I lost 5.86% in two positions. I should have stopped taking positions after the first loss, which is what I promised to attendees of our today day-trading meeting. However, as we have just started our day-trading program and we are in the early steps of our learning process, I break my own rules sometimes, just to take more positions for the purpose of training and using the trade setups. However, I really need to stick to my own style which is a lot more conservative than this. Of course the second position was correct, and the market went up very strongly for tens of dollars (it is still going up). However, it barely went down before it went up and broke above the resistance level, and so it triggered my stop loss.
There’s something that no trader can afford to forget. The markets have always been and will always remain unpredictable. Those who try to overanalyze and push themselves to take some positions every day, will lose.
The other thing is, if you see you are in a losing mode that has caused you to lose your balance and you are losing more, one solution is to stop trading for a few days or one week. The markets change all the time, and so, sometimes your strategy cannot make profit for you. If it continues, then you need to fine-tune your strategy based on the markets’ new conditions. The basics (technical analysis) never change. But the entry, stop loss and take profit (position management) need to be modified and fine-tuned sometimes, which is what I have already worked on, and I will apply the changes from tomorrow. So, the members of The LuckScout Club will see some new things tomorrow, that they hadn’t seen before. As usual, I have simplified the process and made it even easier for the members to get in and set their stop loss and target orders. Above all, I have made our losses smaller and gains bigger. I cannot take no action and just witness that the choppy and crazy market that the current economic conditions have built make us lose over and over, and make us unable to achieve our goal, which is turning our $500 accounts into $1 million after 29 months or so. We will do this at whatever it takes, and nothing can stop us, even the markets. Each and every one of our members should become able to do this 😠
What a professional and consistent trader never forgets is, trading is a long-term business. It is not a get-rich-quick scheme. So, losing on one day, week or even having a losing month can never stop professionals. They fine-tune, refresh and restart 🙂
The LuckScout Community members have just started a long-term profitable business that enables them to achieve financial freedom for them. Nothing can stop us from doing this. Start now. To learn how our system works, please read the posts below:
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