It Made You Money Last Time…

Hey friend,

This morning’s reports showed slower growth in labor costs and Chicago-area business activity.

The Employment Cost Index, which tracks wages and benefits, rose 0.8% in the third quarter – matching forecasts and easing from 0.9% in the prior quarter.

October’s Chicago PMI came in at 55.3, below the 56 expected and down from 58.8 in September.

A reading above 50 still signals expansion, but the pace has slowed.

Let’s see how the markets have been moving.

The Daily Direction

Note: Stocks closed higher yesterday but have gapped lower today as tech continues to sell off. Multiple index directions have flipped downward.

The Daily Nugget

Don’t keep trading a stock just because it used to work.

You buy a stock on a dip. It bounces. You take a profit.

The next time it falls, you’re eager to do it again.

You know this stock. It’s made you money before.

But that past win can make you overlook what’s different this time.

Maybe buyers used to step in quickly after a drop. Now each bounce fades, and the stock keeps making new lows.

You see another chance to repeat your win. The stock is showing you that buying has weakened.

Knowing a name well should help you spot those changes. It shouldn’t give the stock a free pass.

Your next trade needs a reason to work at today’s price, under today’s conditions.

“I made money here last time” isn’t one.

You can trade the same stock again when a good setup forms. Until then, keep looking elsewhere.

You don’t owe a stock another trade because it made you money once.

The Traders Agency Team

P.S. A fresh look at the market can help you spot opportunities beyond the names you’ve traded before.

Every Monday at 9 a.m. Eastern, Head Trader Ross Givens goes LIVE on YouTube to break down the markets in real time and highlight overlooked opportunities.

It’s completely free. Join him this Monday, November 2, to see what he’s watching for the week ahead.

Use this link to join Monday at 9 a.m. ET.

Have a good weekend.