Don’t Force This in This Kind of Market

Hey friend,

Nothing on the economic calendar today.

On Wednesday though, we’ll get the PCE data – the Fed’s preferred inflation gauge.

Let’s see how markets have been moving.

The Daily Direction

Note: Indexes closed higher to end last week but have been moving lower today. So far, still no change in any index directions.

The Daily Nugget

Don’t force certainty where there isn’t any.

One of the easiest ways to get yourself into trouble as a trader…

Is deciding what you think before the market has actually given you enough evidence.

You decide you’re bullish.

Then every green candle looks like confirmation.

You decide you’re bearish.

Then every pullback suddenly looks like the start of something bigger.

That’s how you end up seeing what you want to see instead of what’s actually happening.

Sometimes the market is clear.

Sometimes it isn’t.

And when it isn’t, you don’t need to manufacture conviction just so you can put on a trade.

You can wait.

You can size down.

You can let the setup develop a little more.

There’s nothing wrong with saying:

“I don’t know yet.”

In fact, that can save you from a lot of bad trades.

Because when traders feel uncertain, FOMO usually isn’t far behind.

A stock rips without them…

And suddenly they feel like they have to chase the next one.

Or they see one setup move and convince themselves they’re missing the entire market.

That’s when standards start slipping.

And that’s usually when the forced trades show up.

A missed trade might annoy you for a few hours.

A bad trade can cost you a lot more.

So if the market hasn’t earned your conviction yet…

The Traders Agency Team