Hey friend,
Yesterday, U.S. job openings came in at 6.5 million – far below the expected 7.1 million.
The official unemployment rate numbers have been pushed back to next Wednesday.
We also got some preliminary consumer sentiment numbers – which unexpectedly rose.
The Daily Direction
Note: Indexes closed sharply lower yesterday but have rebounded today – sending the short-term direction of the Russell 2000 and the medium-term direction of the S&P 500 back upward.
The Daily Nugget
Use selloffs as a chance to test your emotional discipline.
One of the hardest parts of trading is emotional management.
No one can truly help you with that – it’s all on you (which makes it extra difficult).
But like anything, emotional discipline gets better with practice…
And there’s no better time to practice emotional discipline than during selloffs.
A position hits your stop loss?
Sell it without mercy.
But if it hasn’t?
Just hold on to it – and resist the urge to cut and run prematurely.
Simple? Sure.
Easy? Definitely not – it takes a lot of emotional discipline.
And minor selloffs like what we saw this week are a great time to practice that discipline.
Over time, it’ll become second nature.
And when everybody else is panicking and losing their heads…
You’ll be able to stay cool, calm, and collected.
You’ll be able to stick to your process…
And that means, over time, you will come out ahead of all the rest.
So the next time the market heads into a selloff, take a deep breath…
And realize it’s a chance for you to get better at trading – by strengthening your emotional discipline.
Have a great weekend.
The Traders Agency Team
