Happy Friday, Evolvers!

The markets are wrapping up the short week on a flat note, with the S&P 500 ETF Trust (NYSEARCA: SPY) closing -0.02% on the day. 

While it’s been unusual to see any trading day this month close unchanged, I’m not really surprised by this on the day after Thanksgiving. 

Half-days usually trade on low volume because much of the trading world is still on vacation and today was no different.

Plus, the market is at a crucial inflection point. 

The SPY is currently butting up against multiple levels of resistance at $400-405. If it can break these levels, the next big resistance to crack is at $410-$412.

Of course, we must also be watching for potential failures at these key price levels. 

If the SPY breaks down at one of these spots, it looks like there’s a lot more near-term downside on the chart than upside. 

Be careful getting too long here. I see a lot of bulls getting lullabied into this rally…

But it’s possible that, soon, the rug will be pulled from underneath these unsuspecting speculators.

And I want Evolvers to be ready for any outcome as opposed to unprepared at the most opportune time. 

We’ll have to wait and see what happens next week. But for now, it’s time for our Friday Q&A!

Keep reading to hear my answers…

“If you were asked to distill your trading success down to one keyword, what would it be and why?”

I think the one word that defines my success is patience.

First, I’ve been forced to be patient in my overall career.

My trading journey has been long and challenging. I watched less experienced traders lap me in gains while it took me nearly a decade to make $1 million.

I had to be patient and constantly remind myself of my end goals to make it through difficult periods in my trading career.

But of course, it was all worth it…

In 2018, after eight years of ongoing dedication, I finally hit the million-dollar milestone. 

Following so much hard work and patience, becoming a millionaire was one of the most satisfying accomplishments of my life and career.

That said, it’s not about the money for me. It’s about the gratification of achieving my goals.

Second, I think my patience with individual trades has helped me have a long and successful trading career.

Think about it. How often have you heard me say I’m ‘sitting on the sidelines’ as other traders anxiously pile into a crowded play?

This comes from experience. I’m extremely picky with the setups and patterns I choose to trade. 

In other words, I’m patient … waiting for the perfect opportunity to strike. (I’d always rather miss a potential winner than take on a certain loser.)

It’s the traders who get too far ahead of themselves (and too wrapped up in their own self-congratulation) that inevitably blow their accounts up.

Instead, be like a zen master when you’re trading. Only trade the setups that check all of your boxes and you’ll have a much better shot at a long and fruitful career.

“What’s your least favorite part about being a professional trader?”

This is a tough one because I love trading so much! 

That said, after thinking about it for a moment, the answer is clear…

It probably won’t surprise you that my least favorite part of trading is taking losses.

No matter how long you trade or how rich you become, taking a larger-than-expected loss always stings.

But ultimately, this is a good thing. If losses didn’t hurt so badly, we wouldn’t be motivated to fix the mistakes that led to them in the first place.

The key is to learn how to weaponize the pain of losing. 

Use the sting as an incentive to never feel it again. 

Instead of unproductively wallowing in your mistakes, you should work to identify and eliminate them.

Start seeing losses as learning lessons. There’s something valuable to take away from every subpar play. 

These days, I don’t fear losses — I face them head-on and learn valuable lessons from them.

Does it still hurt to lose thousands of dollars in a few minutes? Of course!

But losses are an unavoidable reality of being a trader. Avoiding them entirely is futile … the important part is learning from your mistakes. 

Final Thoughts

Have a great weekend, Evolvers!

Once again, let me say how thankful I am for all of you!

I’ll be back in your inbox on Monday, ready to smash it next week.