Beware the Green Eyed Monster!

The Green Eyed Monster of Envy can destroy your trading!  Last night I was talking with a fellow trader that was very disappointed with their trading.  As we progressed through the conversation, it became clear that his disappointment and frustration was self-inflicted.  Although he had turned the corner from a consistently losing trader to a net winning trader, it was not enough.  Like all of us, he wanted more.

As a very competitive person he was comparing himself to other traders and the results they were posting.  Envy was destroying his success!  He was ready to quit trading because of the frustration even through his account was growing.  Although we all work to help each other improve as traders in the trading room, trading is a single person activity.  We all start from a different place, and we all have different goals.  Comparing yourself to another trader is like comparing apples and oranges.

A trader must compete with themselves not others.  Your goal should be to see improvement in yourself and your trading account.  A good place to start is by setting small achievable goals for each week or each month.  Record your results.  If you only made $10 last month that is a Huge Improvement if you have been a losing trader!  If in the next month you see a gain of $15 that’s a 50% improvement over the prior month.  Small incremental improvements build confidence and over time builds big accounts.

On the Calendar

Today on the Economic Calendar we have the Case-Shiller numbers at 9:00 AM Eastern followed by New Home Sales and Consumer Confidence at 10:00.  Although they are all important, the big number of the day is the New Home Sales and the one most likely to move the market.  Earnings are starting to ramp up with 190 companies reporting today.  Keep checking!

Action Plan

Futures remained positive all night and continued to push higher in the premarket as earnings roll out.  How great it will be to have a follow through day after all the choppiness of the last couple months!  I will be looking for new trades today.  However, I will be watchful for signs of a pullback to test support because it could happen at any time.  Yesterday was saw the Dow close up more than 200 points.  It would not be out of the question to see some profit taking.

Trade Wisely,

Doug