Hey friend,
We got the big job openings data this morning.
It came in at 6.87 million – below last month’s, but ahead of expectations.
Tomorrow – private sector employment numbers.
The Daily Direction
Note: Indexes closed lower yesterday but opened higher this morning – keeping all index directions in the green.
The Daily Nugget
There’s a difference between managing losses and avoiding losses.
No trader likes taking a loss.
That part is natural.
But there is a big difference between managing losses and avoiding losses.
Managing losses means accepting that some trades will not work, then using stop losses to keep the damage small.
It is not emotional. It is not personal. It is just part of the process.
Avoiding losses is different.
That is when a trader keeps moving the stop lower because they do not want to admit the trade failed.
They tell themselves they are “giving it room,” but really, they are just delaying the loss and hoping the market bails them out.
That is where small problems become big ones.
Losses are inevitable in trading.
Big losses do not have to be.
The goal is not to avoid ever being wrong. That is impossible.
The goal is to make sure that when you are wrong, the loss is controlled, expected, and survivable.
A stop loss only protects you if you respect it.
So use stops for what they are meant to do: keep one bad trade from turning into a much bigger mistake.
The Traders Agency Team
P.S. Speaking of mistakes, have you heard of Big Oil’s $7 billion mistake?
