Never Let the Market do This to You

Hey friend,

We got some manufacturing and construction spending data this morning.

While manufacturing data outperformed expectations, construction spending underperformed.

This week, we get a lot of jobs data – from job openings to the latest unemployment rate.

Let’s see how the markets have been moving.

The Daily Direction

Note: All indexes closed higher last week and opened higher today as well on news President Trump has called off the Iran strikes – sending almost all index directions back upward.

The Daily Nugget

Never let the market take away your choices.

You can be early and still make money.

You can be wrong for a while and recover.

But once leverage or position size forces you to sell…

The decision is no longer yours.

That’s the real danger.

You may be dead right about where a stock goes over three years…

And still get wiped out in three weeks.

A good thesis cannot save you from a margin call.

But someone else getting trapped can create a great opportunity for you.

A fund gets hit with redemptions.

A trader needs cash.

Shares get dumped because somebody has to sell now – not because the business suddenly got worse.

The patient buyer gets the better price.

So leave yourself room to move.

Trade small enough that one ugly swing does not make the decision for you.

Keep some cash available for the moments when other people have none.

Because the market does not always reward the smartest trader.

Quite often, it rewards the one who can still act.

The Traders Agency Team