Hey friend,
Nothing big on the economic calendar today.
Just the latest numbers on durable goods orders, which showed a decline in February that was steeper than expected.
Let’s see how the markets have been moving.
The Daily Direction
Note: All indexes closed higher again yesterday but have been moving downward today. No change in any index directions.
The Daily Nugget
Ask yourself – what factors increase the probability of a successful trade?
There are no guarantees in the market.
That means all trading is probabilistic.
The good traders study the probabilities that a trade will work in our favor…
And then used disciplined risk management to limit any potential losses.
Yet, this is not how most traders operate.
Instead, what they do is to operate on a “hot tip”…
Or read about a stock in the news and think it “looks good”.
But they never ask themselves…
Does this really increase the probability of a successful trade?
Because if they did, they would quickly realize that a “hot tip” or reading about a stock in the news does NOT increase the probability of a successful trade.
So, what does?
Well, there’s obviously more than one factor.
But one BIG factor is institutional buying…
Because they’re the ones responsible for over 80% of all market volume…
Meaning they have the power to shift entire sectors – let alone individual stocks.
That’s why if you know how to spot the tell-tale signs of the institutions quietly loading up on a stock…
You swing the odds of success heavily in your favor.
Tomorrow Head Trader Ross Givens will be sharing something on this, so keep an eye out in your inbox for that.
In the meantime, the entire media has been abuzz about the coming SpaceX IPO.
But as Ross warns in this video…
It could all be a trap for the regular folk.
The Traders Agency Team