Just a single trade today. Nothing else had set up on either DAX or GBPUSD. The markets seemed pretty flat until Fed Chair Yellen gave her semi-annual testimony at 3pm GMT – then Cable turned volatile and the equities markets (incl. the DAX) again made new historic highs.
Psych Assessment to follow on Wednesday morning…… including an assessment of whether it was Michael Douglas or Donald Duck who judged the 123 pattern at the $50 handle. [ What does the daily Psychological Assessment comprise? ] And here it is:
1. The proficient trader (Michael Douglas) was in control for the trade entry and the trade management.
2. And the proficient trader was in control throughout the trading session, mostly sitting on his hands! Thus it would be correct to say that most of the session was spent trading well.
3. No thoughts on this one.
4. Good trading included: waiting patiently for Oil to get to the key level, and then waiting for the technical pattern to form over a good 30 minutes, executing in line with my strategy, and managing the position accordingly. Good trading also comprised staying out of Cable and the DAX when they were trading sideways ahead of Yellen. And not getting in once Yellen started speaking. Her initial speech was followed by Q&A, so getting in during that time would have been a complete gamble (in my view). Ultimately the speech triggered dollar weakness and strength in equities.
Other good “trading” included forcing myself to go out for walk to Sainsburys with one of my colleagues at lunchtime. The walk gets me some fresh air and some movement into my muscles to allow me to be fresh again for the afternoon.
Bad trading: No bad trading yesterday. Again the destructive trader was kept at bay! Nice work
5. No bad trading. So no need to analyse there. Is the best way to avoid “bad trading” to simply do lots of “good trading”?
6. Nothing else considered thus far.