Let’s see how the markets have been moving as we close out the trading week.
The Daily Direction
Note: A solid close yesterday as the market anticipates the end of the Fed rate hiking cycle (despite Powell’s comments). Everything solidly in the green.
The Daily Nugget
When the market is rallying, beware of becoming lax in your trading discipline.
The bears are getting clobbered right now, and sentiment is quickly switching bullish. Investors are optimistic – it seems the good times are back.
But these can also be dangerous times – because it can seem “okay” to let your trading discipline slip.
Maybe you decide to ignore your stop losses because the stock is “sure” to come back since the market is rallying. Or maybe you decide to hold on to your entire position of a rising stock instead of systematically taking profits along the way.
Do not let this happen. Stay disciplined and stick to your strategy – because that is how you ensure long-term trading success.
And if you’re not sure of what the best strategy to follow is right now…
The Traders Agency Team