ETF Range Projections & A Quote to Start the Day
Don’t accept that you can’t make a difference. Because if you can’t make a difference, you won’t make a difference, and if you put a multiplier on that we will continue on an unsustainable pathway.
- Maurice Strong
For more detailed economic data click “Today’s Calendar” in the navigation bar to the left. 
Chinese markets are very strong this morning on manufacturing numbers, other markets are for the most part on the plus side: Nikkei 225 -0.52%, Hang Seng +2.41%, Shanghai +2.52%, DAX +0.32% and the FTSE 100 +0.32%
At about 7:20AM ET, ahead of the personal income, ISM, and construction spending reports the futures are suggesting a better open: Dow +50, S&P +6, NAZ +8, Oil +$0.71 and Gold +$4.30
Trade Safe and
have a great day!
Breaking the Rules
Ever notice that the traders who make the greatest profits also tend to take the greatest risks. They are rule breakers who go their own way. They search for innovative trading methods. They think outside the box. From Jesse Livermore to Paul Tudor Jones, there are many inspiring tales of talented, super traders who make huge profits by bending the rules and doing whatever they want. There are far more traders, however, who blow out their accounts because they don’t bring the proper amount of discipline and money management to their trading. You’ must learn the rules before you can break them.
If you are new to trading, begin by following some basic guidelines. First you must have a well defined trading plan clearly defining how you will enter and exit a trade. Secondly you must learn to manage money, manage risk. More than just protective stops you must learn how much of your account dollars to spend on a specific trade and whether or not you should accumulate a position over time or jump in all at once.
Conventional wisdom is only right when it is, but as a new trader, you don’t know when it is right and when it is wrong. In time you will begin to value your experience. The more experience you accumulate as a trader, the more you can anticipate how the markets will behave and how you should act.
Some jewels of conventional wisdom are right much of the time, and you should keep some of them in mind. The important point is to survive the learning curve. If you are still inexperienced don’t take on a big position like a rogue trader looking to score big profits unless you are absolutely sure of what you are doing. Look at the big picture. Any given trade is just one trade among many, but this is only true when the amount of money you risk is relatively small. If you risk 50% of your account on a single trade then it isn’t just a single trade amongst many any longer. It has potentially grave consequences. Manage money, manage risk; it’s conventional wisdom worth following.
When you have years of experience under your belt you may well know when to push limits. An experienced trader understands when he gets on a roll and knows that things are clicking. It may be breaking the rules, but to the master trader, it is how big profits are made. I must note however, that master traders’ can afford to take a greater risk. They have well-honed skills, and should they lose substantial amounts of capital, they can diligently work to make it all back. A new trader, in contrast, will have more trouble making back losses, and should they realize a big loss, they must stop trading and recover financially before attempting to trade actively again.
A trading strategy that worked well one month may no longer work when conditions change. The well honed trader is continually looking for new strategies and tries to look at the markets from new perspectives. While the masses look at the market in simple terms, the master trader is more creative. He looks for a new vision, and tries to develop a trading strategy that will capitalize on a unique set of market conditions. Master traders can afford to take bigger risks, newer traders cannot. It is not a good idea to be too unconventional at first; eventually however you will become more creative and go your own way. That is if you wish to reach the status of a seasoned winning trader. Until then keep trading cautiously at first but gradually push yourself to new levels.