Flow State #53

Short Week - Limited Volatility?

Welcome back everyone!

Just a quick heads-up: the markets will be closed on Thursday, and we'll have a half-session on Friday. It's likely that trading volume will be low, which doesn't interest me much except for checking on swing positions. Therefore, there will be no posts on Wednesday and Thursday night. I hope you all enjoy your week and have a blessed Thanksgiving!

Additionally, I suspect that market volatility may be limited this week, so I don't recommend trying to force trades in such conditions. Instead, I'll be monitoring my main stocks and observing some swing levels in other stocks. This week, I plan to delve deeper into market analysis, which will include a more comprehensive look at futures trading – an invaluable tool for risk management.

Remember, stocks offer no inherent leverage unless you're using a leveraged account. When you have a solid trading process, leverage can be an invaluable ally. Rather than leveraging money that isn't yours, leveraging the instruments themselves can be very beneficial, which is precisely what futures trading offers. A small move in an instrument can be leveraged up to 50 times, meaning a $1 move could result in a $50 gain. However, I must emphasize that leverage is suitable only for traders who follow a consistent process and are aware of the increased risk. With a solid structure in place, this can be the safest approach for short-term trading, though it's not the same as investing, which is obviously a safer long-term strategy.

For longevity in trading, I advise staying away from options to maintain progress and stay afloat in the market. Too many traders try to compete against seasoned professionals who are adept at capitalizing on others' mistakes.

When dealing with options, common shares, or futures, I recommend using multiple accounts to keep a clear track of all activities. For this newsletter, I'll focus primarily on futures to simplify the learning curve. As I continue with these teachings, I'll strive to make the content more accessible and less scattered. While the current topics might seem clear, I have significant plans for this newsletter, aiming for it to be a long-standing resource.

Now, let's dive into my thoughts for the upcoming short week.

Let’s dive in!