Weekly Perspectives: Thanks for coming out!

Weekly Market Outlook For September 30 – October 4, 2019
September 28, 2019
Weekly Market Outlook For October 7-11, 2019
October 5, 2019
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Weekly Perspectives:  Thanks for coming out!

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Thanks for coming out! – 

 

Thank you to everyone who came out to this past Wednesday’s Meetup.

We packed the venue and it was good to see a lot of new and familiar faces.

Big thank you to Terrence Li for sharing his honest trading journey and perspectives on the reasons why most traders fail and what to do about it.

You can find his presentation posted in our Meetup Members Library.

You can sign up here for a free account to get access to the Meetup library.

Hope to see you all again next month!

 

Goodbye Q3, Hello Q4 

This week the markets were once again buffeted by headline risk as the combination of a possible impeachment Stateside as well as the possibility of Chinese stocks being delisted from the NA equity markets had traders selling first and asking questions later.

We have 1 full trading day left in September and Q3 so this coming week bring into play the open of a brand new month and quarter.  

Even with the recent gloom and doom over the past 20 years, October has historically generated positive returns. The table below shows the returns for the Nasdaq 100.  

$NDX Monthly Averages

This means we want to pay careful attention to see how price transacts around the new weekly, monthly, and quarterly opening levels for possible reversals.

Watch this week’s Weekly Outlook video to see the levels we’ll be watching.

In this week’s video, we look at the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD BTCUSD TOTAL EEM FB TLRY LULU MA XLV JNJ NKTR SNAP and more for the week of Weekly Market Outlook For September 30 – October 4, 2019.

 

Mindful trading – 

In this recent article from Dr. Brett Steenbarger, he shares a Simple Technique for Overcoming Reactive Trading.

To summarize it goes as follows –

  1. Set an alarm every 20-40 minutes throughout the trading day
  2. As soon as possible after each alarm, pause and fill out a brief checklist questionnaire. 
  3. Using the checklist, rate your emotional state (calm or worked up) and your cognitive state (focused or distracted).  

If you find that you are overly distracted, emotional, and not in the proper zone, take a few minutes away from the screens, engage in deep, slow breathing and visualize something peaceful and calming. 

Only return to the markets once you regain the feeling of being centered or until the next alarm rings.

Having done a similar routine for a long period of time I can attest that this act of checking is not only an act of mindfulness but cultivates self-awareness.

Small caveat:  I actually like to add one further item to my checklist questionnaire and that is how I am feeling physically.  So the trifecta would be SET – Sensations, Emotions, and Thoughts.

As Dr. Brett notes, what this accomplished was quite important:  It turned mindfulness into a daily habit.  Over time, the traders realized that they were more at risk missing opportunity because of being in the wrong mindset than being temporarily away from screens.  Once they realized that their mindset would sabotage their trading, their FOMO led them to do the right things to get calm and focused!

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Weekly Perspectives: Thanks for coming out!

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