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Futures Trade Desk- New Markets Mechanics Require A Defined Plan

Trade Desk Client Note

Global Futures Market Review


New Markets Mechanics Require A Defined Plan

It looks as though a lull in equity selling will contain further rises in bullion markets. The dollar index is at the pivotal 75.90 resistance area. The global central banking cartels are in a currency war, and in a race to the bottom in regard to FX valuations. This will be a bumpy ride.

Traders will be monitoring the reaction to the Bank of Canada interest rate decision and statement from 09:00 ET. USD/CAD could get volatile.

The S&P 500 has dropped 20% since Jan 2008, with average September moves of over 7%. Daily volatility will remain high. It is at times like this that traders and investors need to have a plan.

Great traders have certain repeatable traits that all can learn from, including;

-Empathy and the ability to listen.
-Faith in their own ability to get things done, if life and in work.
-Humility, and a willingness to accept defeat as graciously as accepting success.
-Desire to work towards, and not to just expect, having more success than defeat.

They listen more than they spoke. They have two ears and one mouth and learn to use them in the right proportion. The ability to listen, either to a mentor, to yourself, or to the market, is critical for success.

They have an undying faith and belief in their own ability, and accept that most things that go wrong are probably outside of their control because they planned their work. Their brutal honesty with themselves and with others allows them to develop a faith in their own ability that is beyond the norm.

They tend to be humble and understood that they were not smarter, stronger, nor wiser than others; they just know that there are few others that worked harder to follow something through and to achieve their goals.

They know that they can get a job done, but also have enough humility to accept defeat; that is what defines them, and is what defines any great trader.

The great ones in life and on the exchange floors are the ones who are not susceptible to the negative influence of others; they have a goal, they have a plan, and they will get to their goals. It may take time, they may fail along the way, but they just will not let things overwhelm them as they plot their course.

Successful traders have a plan that they refine, develop, test, and debrief on a daily basis. They share their plan as a work in motion, and not as the Holy Grail. A successful trader accepts that there is always something new to learn, and however good the plan is today there will be the chance to improve it tomorrow.

Zig Ziegler says; "Working without a plan is about as difficult as trying to come back from somewhere that you have never been."

Success rarely comes without a plan and financial freedom only comes by actually following the plan.

Get a Plan! It may be as simple as setting three sets of targets at the same time that a new position is entered. It may be to sell at the high and buy at the low of the previous session. Maybe it includes timing a trade to coincide with regional market open and closes.

No matter what it includes or how basic it may be, trading with any kind of plan beats the emotional disaster that can occur when things go wrong that were not properly planned out ahead of time.

However simple, diverse, or outright complicated a trader makes their plan is personal choice, but trading without a defined plan in the new normal of 2-3% daily swings is not an option.

No Plan? Maybe look to TheLFB on-line training academy for a way to plot your day. Full Detail