Morning Commentary Friday May 14th

by Mark Fenton on May 14, 2010

Sovereign debt concerns and unemployment are still roiling the markets today. I hope you stayed on the sidelines this week.

Next week if the market is calm we can begin to enter June trades. After a month like May that was tough for many traders it can be useful to consider doing a few things more conservatively. First off, trade smaller lot sizes and less trades all together. If the market moves rapidly again it is much easier to adjust 2 or 3 trades that 7 or 8.  Secondly lower your profit and max loss targets. Maybe go for 10 % profit and 15% set as max loss. It is import psychologically to get some winning trades again to help you regain confidence. Insurance also is very important, keeping the damage limited particularly on the down side with some extra puts. A few tweaks like this can go a long way.


{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: