Emotional robots

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An irony of the modern trading system:

It’s usually best to trade with a robotic, zen-like attitude. Where you don’t allow your emotions to drive your decisions but rely on the data & probabilities.

Yet when I use my scans to allow the computers to give me trade ideas, there’s still a nuance — perhaps an emotional nuance — to picking the trades I take. Reason being is that there are a whole lot of small variables within each chart that I can’t program into a scan yet are essential to picking good trades.

Many people have farmed out trading to programmed bots.

Which, I suppose, is a way to trade.

Works best if you have an army of capital to deploy.

But for the everyday traders like you & me, we still have to rely on the ol’ fashioned, God-given computer in our cranium.

So, I often find myself trying to stay robotic when looking for trades, but going with my gut when I decide between four or five to pick out one.

This requires a trading plan.

I think I’ve got a pretty good one, because it’s been making me an average of 1.88% per week this year. Those are good returns on my risk, if I do say so myself.

Morgan Stanley's profits surged a whopping 45%, reinforcing what looks to be a robust Q3 for big banks.

Yahoo Finance

Why it matters …

So, earnings season always starts with large financial institutions reporting their earnings. Last quarter saw a surge in Mergers & Acquisitions and big banks reap lots of money from those. Not surprisingly, the initial financial earnings reports are very positive. This sort of news will lessen the noise from the China/U.S. trade war saber rattling. An expected steady diet of “beat the street” earnings will fuel a continuing bull market. Buckle up and keep your arms and legs inside the vehicle!

Comments: Although crypto continues to struggle, the rest of the market has turned up the gas burner! We seem to be making up last Friday’s plunge in fairly short order. Fun times to watch premium decay! Enjoy your Fall Break, everyone. Pumpkin lattes all around. 🎃

Here’s an idea from my Alpha scan going for 1.71% return on risk into this Friday’s expiration.