We opened lower this morning as expected, given all the news circulating in the banking world. While it wasn’t a completely red day, market conditions still appear unfavorable for traders.
- News: CPI numbers are out tomorrow morning, maybe we are waiting on this to move the markets more.
- S&P 500 futures update: We recovered well this morning from the initial drop, but it was expected that we would experience some pullback. However, we are not yet out of the woods, as this chart still does not show bullish indicators.
- Forecast: Tomorrow’s CPI release could potentially impact the markets, but whether it moves upwards or downwards remains to be seen. In today’s unpredictable news cycle, it’s hard to anticipate what to expect. Sometimes, negative news can result in positive market movements, and vice versa.
Trading is a Cruel Endeavor
This afternoon, I executed a trade that met my entry criteria. I observed a MACD crossover, followed the trend direction of the 200 MA, and noted that my short-term moving averages were also in the right direction. I entered the trade when I saw that the price had broken above the white trend line. To ensure that I closed the trade before the end of the day, I kept a tight stop loss.
Unfortunately, the price movement hit my stop loss by a couple of ticks before fading again. While I did take a loss, I am satisfied with the trade overall since I followed my plan, waited for a clear entry signal, and executed it. For now we move on and wait for the next signal to enter!
Today was a challenging day to trade, as I felt the urge to take positions, but I tried to remain patient and avoid entering trades just for the sake of being in one. Although I did take one trade, it went against me. However, as we previously discussed, I stayed true to my plan, and I am satisfied with that. I am aware that sticking to a consistent plan over the long term will eventually yield profitable results.
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