Over the years I have employed a variety of stop strategies with varying results. I’ve tried wide stops, narrow stops, multiple and partial stops, lazy stops, intelligent stops based on volatility, etc. After having spent a significant amount of time and effort on trying to find the one perfect stop logic I’ve basically boiled it down to this: There is no perfect stop – period. Getting stopped out is an inherent aspect of trading and you should simply recognize it as a transition point between being in and out of the market. Don’t over think it. After all you can always enter again should market conditions warrant a new campaign.
I feel rather conflicted about the price action over the past month and quite frankly that’s exactly how I should feel and thus act accordingly. Just take a look at a daily E-Mini chart and compare the March contract (ESH7) with the current front month (ESM7) and tell me what you see.
After an extremely profitable first quarter I think most of you would agree that I have more than earned myself a little vacation. And boy do I need one as I have been feeling myself running on depleting reserves over the past few weeks. Yes, even the Mole is only human (sort of). Also, beyond the polished facade and daily evil deeds there had been a lot happening behind the scenes, some of which I have no doubt Scott will be talking about as he’ll be filling in during my two week absence. And may I just say – are you in for a rare treat ladies and leeches!
No matter where you stand politically and what you may think of President Donald Trump, you’ve got to admit that he’s a pure breed optimist. And just maybe, despite all the media poison and the political infighting, it is that very sense of good old fashioned American can-do optimism that continues to fuel the flames of the Saturn V mega rocket that has propelled equity markets to all time highs with apparently no end in sight.