Last night was the first night in months that I slept through the night. I’ve had sleeping problems since I was a child but anyways… I slept so well and felt so refreshed that I decided to enjoy the slumber and only trade 2/3 of the day. I absolutely KNEW today was choppy and I refused to make the same mistakes I made yesterday.
First thing I did, cut my size in half. Second thing I did, be extremely picky regarding what trades I will take. I had it in the back of my mind before I even looked at any specific charts that I would trade very lightly today as I’m not comfortable in this scenario yet. Third thing I did, focus on range plays… short the top of a range instead of looking to go long a breakout. Range plays are not my bread and butter by any means but the market moves in two ways: trending or chopping. I am proving to myself that I am capable of making smart trades in a trending environment (yes I know… it is easier during these times) but for this to provide a consistent source of income I need to be able to trade range days as well. As you will see in todays trades, I traded lightly (only 4 trades all day), I took profits quickly and I cut losses fast. While today was my smallest gain to date on this account, I couldn’t be happier. I know that theses days are when I normally destroy my account… just go look at yesterdays trades.
I’m sure I repeat this often but I honestly feel as though I am learning more and more every single day. This isn’t even a job to me. I hate waking up early but honestly, with a good nights sleep I can’t wait to get up and look at charts for 8+ hours.
Trades for the day:
I could tell within the first 30 minutes of the market open that it was a non-conducive day to trade my style. I’m not just saying that in hindsight… I actually said that out loud and in the chat room. Yet what did I do? I pushed the gas instead of the brakes. Looking at my stats, I traded the most amount of contracts today over any other day. It is data like that which I really do appreciate because what it has shown me is that I tried to recoup my losses instead of accepting a small day at break even or a little red. I pushed it toward the end and I know I did. I’m glad I did because I have now given myself an experience that I will remember as ‘you pushed it like an idiot, and you burned yourself.’ I will not be beating myself up over losers/losses because being strong mentally requires confidence ALWAYS and I will not go back to my dark place of doubting every trade I take. I can do this and I will do this. Last week and this week and probably this upcoming week are here to have me go through how I will react in different situations. I’m going to listen extra well next time the words ‘this market is not conducive’ come out of my mouth.
Also, Thinkorswim was placing these phantom orders for me where it would fill a cancelled order. That definitely shook me a bit having to manage those. Hopefully I will not have that problem again.
Trades for the day:
Tried to focus on my entries of falling wedges, ascending triangles, and also trailing my stops. Proved to be another trendy day in the indices which really fits my style of trading. The biggest concern I have is that I will not recognize days that are choppy and harm my account. Going to paper trading has really help solidify the fact that if I take ALL my entries that meet my criteria, the odds are generally in my favor! I know I’ve said it many times but I think really putting it into action is helping me the most. I’m going to continue building my case this month before scaling back into my account. I’m really enjoying Tradervue for trade analyzing and plan to continue using it. I hope it gives you guys some more data on my entries, exits, and scaling.
Have a good weekend.
Today was a good day. First trade of the day, end up down $250. I could tell just from the morning’s candles that it was choppy, and getting chopped up was not something I was looking to do. I gave it some time to produce a trend and sure enough it did. I dug myself out of that hole and ended up positive on the day. Another key feature is that I was only 50% correct in my trades, but I finished positive. Kept my losers small enough that my winners washed them out. That’s the key to staying around for the long haul.
I think what I’m most proud of is the fact that regardless of any loss I took, I stayed in the moment for the next trade. I wasn’t trading to ‘get back what I lost.’ I was trading because it made sense to. Now I have certainly made some poor trades on my capital account, there is no denying that… but I have also had some stellar days. What I fear the most is not being able to recognize the days that are not conducive to my trading style and that I should not be trading. When I’m on it, I’m on it. I just feel at peace and in sync with what is happening. Maybe that’s it right there. Maybe on days when I’m not feeling the rhythm it’s time to sit on my hands.
Trades for the day:
So yesterday I was busy getting setup to paper trade (as close of a setup as I can without actually using my current capital). Worked out some kinks and hit it full speed today. I’m also going to use something called Tradervue to post my trades. Hopefully this will work nicely with the website.
Oh yea… and the $SPY + most stocks bled out today. It was awesome.
Keep in mind, this month is full on paper trading. I’ll post and share all my trades (both good and bad).
If you click on those trades you can see the times/charts/points at which I scale out. Let me know what you guys think or if you prefer just having screenshots of entries/scaling.