Rules regarding trading suspensions (from 27th August)
“Action/Company Policy: Going forward, the penalty for ill-disciplined trading – meaning trades taken in the absence of a valid setup – except if they are closed immediately – is removal of my trading privileges until the end of that week.”
Copy of email sent to my trading coach/mentor today:
Hi [trading coach]
I have decided to impose a trading-suspension to the end of the week. This is due to how I behaved during today’s trading session.
Yesterday was fine. 5 trades. Profit of 1.1R for the day. Good discipline.
Today, I had a series of small losers/scratch trades this morning. The scratch was CADJPY where I closed it after having been in profit to around 0.7R. However there was a re-entry signal a few minutes after I exited – I decided not to take this one and instead went to the cafe for a short break (at 9am). This setup gave rise to what would have been a winner of 3.5R-4R (given the way that I manage the trades). I am not sure whether this stayed in the back of my mind and whether it had an adverse impact on me.
After lunch I went short Cable – again closed early, then re-entered, went into profit and then scratched. All this was ok. They were valid setups. However at this point I was down 1.4R for the day, after not making profit on any of the 5 completed trades. This would have been a good point to stop for the day.
However I then quickly switched to the DAX and took a sub-standard setup, got hit for a full loss in 3-4 minutes, and then very quickly went short again (for a reasonable setup though not a very good one), managing carefully and then closing for another small loss. This put me at -2.8R for the day from 7 trades.
I’d like to think that the last two trades justify a suspension to the end of the week – I am not sure why I did this, and I am disappointed with my behavior.
Shortly after this, at 3.30pm, I got up from my desk and went to Hyde Park for speed-skate training with a friend.
It means I lose 1.6R this week after winning 8.5R over the preceding two weeks. No big deal.
During the suspension I will work on testing and admin.
Sent from my BlackBerry® wireless device