Hey friend,
Fewer Americans filed for unemployment benefits last week than expected.
Initial jobless claims came in at 194,000, below the 200,000 forecast and down from 199,000 the week before.
September’s leading economic indicators also beat expectations, holding steady against a forecast decline of 0.1%.
Tomorrow brings fresh readings on manufacturing, services, and consumer sentiment to close out the week.
Let’s see how the markets have been moving.
The Daily Direction
Note: Indexes closed higher yesterday but gapped lower this morning – sending the medium-term direction for the S&P 500 and the long-term direction for the Russell 2000 back downward.
The Daily Nugget
A small account doesn’t need to make up for lost time.
When you’re trading a small account, a sensible gain can feel frustratingly small in dollars.
You make 10% on $2,000. That’s $200.
Then you see someone posting a five-figure profit, and suddenly your own progress feels inadequate.
It’s easy to start thinking you need to take bigger risks just to catch up.
So you put more money into the next trade than you planned. Or you take a setup you would normally pass on because the potential payout looks big enough.
But your desire to grow faster hasn’t improved the trade.
It has only increased what you stand to lose.
And a loss hits a small account just as hard in percentage terms. Losing half your money means you need to double what’s left to get back to where you started.
The pressure to catch up can put you further behind.
Before your next trade, ask yourself: Would I still take this position, at this size, if I weren’t trying to reach a particular dollar amount by a particular date?
If the answer is no, your deadline may be making the decision for you.
There’s nothing wrong with wanting substantial growth.
But choose a strategy you understand, decide what you can afford to lose, and judge each opportunity on its own merits.
Your account balance is a starting point. It isn’t a deadline.
The Traders Agency Team
