The JOLTS report - Job Opening and Labor Turnover Survey - released at 10.00 a.m. this morning jolted the market into much needed vol and one direction move for us daytraders. I hope you the reader had a profitable day.
If you weren’t aware this report was being released, it is good to bookmark this site. Economic data drives price action, any live positions you have on during data release could be adversely affected.
I got in right after JOLTS.
Job openings increased in August which prompted traders to swiftly sell the market with the understanding the Fed still has much to do to fight inflation.
I caught over 200 points in the NQ today and days like today make back for the annoying R1 paper cuts we must all take as disciplined professional traders to have a long and fruitful trading career.
Giving rope to your losses and not letting your winners run – is forgetting one of the most important rules of trading which is: you are focusing on the single trade in front of you to get an emotional satisfaction rather than thinking long term.
If you have problems taking the R1 loss and are not able to let your winners run, you should write this quote on a notecard and tape it to your monitor.
Trading is not about emotional satisfaction and it is not about impulsively taking trades without a plan. Trading is about taking the best, selective trades you have seen work before that is part of of your plan.
One trade is a random event in your trading career, it could go for you or against you, you have no control over that. Thus, you must take the R1 loss if it moves against you and never ever move your stop, but you have to take as much out of the market when you can if the trade moves in your favor.
Remember: it is only one trade, there will be many trades in your future. But if you are going to sabotage your ability to trade tomorrow or next week by moving your stop by taking a massive loss in this ONE TRADE then you need to stop and start working to learn what the nature of trading is immediately.