Don Miller, Trader Extraordinaire!

I think this is the best free video about the right approach to trading. It is centered on yesterday's action:

He is talking about day trading but I think the same approach can be taken to longer term swing trading. The difference is managing the risk of holding positions overnight. This is why, if I add to a position, I do it mostly before the lunch and get rid of it if it doesn't go significantly my way until the close.

Meanwhile, the market reversed nicely yesterday. Still, the put/call ratio has not fallen (on the inverted chart) too much, suggesting there is still more downside in the cards:

The fact that the market has been in a range for four days now with a massive failed upside break-out attempt (yesterday) portends a steep correction. Also, as always, defense has to be prepared for the worst. In this case, I will start exiting my short if the SPX breaks and holds above 1150.