New Month, New Goal, Same Effective Trading Strategy ahead of MAJOR News today

Professional traders run their businesses on confidence, rather than fear.  The confident trader enters the market with a trading plan every day, and when he/she follows this plan they see success.  A fearful business owner runs his/her business on the fear of the unknown, and in turn never sees great success.  A rookie trader enters the market in a defensive mode, fearing every bounce in the price action along the way.  Operating on fear will only lead to failure.  We must be confident every day in our actions, and the first step in this process is a trading plan.

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The James’ Report:  Day Trading Strategies for Professional Traders

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What happened Overnight:

– China PMI Manufacturing data remain soft
– Germany’s 2-year Schatz yields at -0.002%; turns negative for the first time; 5-year BOBL and 10-year and 30-year Bunds yields at record lows in session
– Major European Manufacturing PMI revised slightly higher in final reading but at 3-year lows
– Italy April Unemployment hits record high
– Euro Zone Unemployment tops 11% for fresh EMU record high
– Brent Crude moves below $100/bbl, first time since Oct 2011 
– Irish treaty vote may be closer than initial poll indications, though likely to be passed

– European equity indices opened the session mixed. However, equities have since moved into negative territory amid the release of mixed PMI data out of Europe and China. Additionally, unemployment rates in Italy and the Euro Zone hit record highs in April. Furthermore, concerns related to the EU debt crisis remain, as Italy and Spain’s 5-yr credit defaults hit record highs on the session, while the Spanish/German 10-yr yield spread moved to fresh record highs above 540bps, amid renewed speculation that LCH Clearnet could raise margin requirements for Spanish government bonds. The DAX index has underperformed, amid the weakness in shares of Deutsche Bank and BMW. Looking ahead, the focus will be on the later today release of the monthly US payrolls data. Also, Spain is due to release to release budget data for its autonomous regions. Regional governments in the country have been largely responsible for the upward revisions to Spain’s 2011 budget deficit.  read the complete morning prep here