I took three trades on Thursday and one this morning (on Friday). All the charts for those are below. DAX and Oil trades were full losers. The two trades on Cable – one was a scratch – unfortunate situation to do with the broker execution – I have asked them to investigate – though I can’t blame the broker since I chose the broker (CMC Markets)! The second Cable trade was nice, utilising an “all-in/all-out” positing management approach returning close to 1R.
- For each completed trade, who was in control? Was it the proficient trader inside me? Or was it the destructive George? What picture or image is evolving for both of these traders?
- How much of the trading session was spent “trading well”, and how much of the trading session was spent “trading badly”?
- How could I have increased the amount of impact that the proficient trader inside of me, had on the trading session?
- List and describe specific examples of good and bad trading from the day’s session.
- Why did I do the “bad trading”? What, such as specific events, or patterns of thought, caused it?
- What other observations, in the context of Chapter1, can I make?
Key Issues: Destructive Trader influence has significantly decreased, Technical Competency – is it not there, or is there and not being applied – if not, why not?
1. All of the positions were entered with relative calmness and in a relaxed state. I was always either waiting for confirmation of breaks or candle patterns, or in some cases used stop-entry orders for 1/2 the position.
The management of the positions was rather passive – in line with my rules – (i) I try to interfere in the trades as little as possible (ii) I plan the targets in advance, or if I don’t (such as with this morning’s DAX trade) I have an approach in place (iii) I reduce risk where possible e.g. in front of news announcements such as the US retail sales figure on the Cable-1 trade (iv) not letting fear and greed influence my position management.
2. All in all, most of the session was spent trading well. It seems though that even if I trade well, profitable results are not ‘guaranteed’. Why are my results for the last 2-3 weeks effectively scratch, whilst I clocked up 10R in just 15 trades doing demo/paper trading in Dec’14 and Jan’15?
So I feel like I am trading well – I am doing the right things – I am not working against myself – maybe it’s just my analytical skills that still need to be sharper?
3. I can increase the impact of the Proficient Trader by continuing to sharpen my chart-analysis and my technical knowledge.
4. Good trading: Reducing exposure on Cable-1 ahead of USD news. Following up with broker on execution. Target selection on Cable-2 (using the daily R3 pivot line).
Bad Trading: Chart analysis on the Oil trade (see the comments I made on the chart regarding the location of the double top relative to the key level). This could be circumvented by having better check-lists in place. That said I know this information already – am I a bit too lazy to apply it in detail at all times? Is that what the problem is? Not willing to do the hard work?
6. Not considered
Oil trade taken on Friday afternoon: