4/3 – 5x Trades completed in last two sessions + psych review

Summary of results: Note that the net result of these 5 trades is completely scratch.  The two winning DAX trades gained 2.38R (average of 1.19R) to offset the 2.36R lost from the three Oil trades (average 0.79R).  So a 40% win rate combined with a 1.5:1 RR produces break-even results – what an insight 😉

139 and 141 Oil Mar4   138 Oil Mar3 140 and 142 DAX Mar4   Psychological Review  (why I am doing this?  Applied Crash Course in Applied Psychology) Part 1 Who was in charge/control?

  • T139:  Setup was good – proficient trader was in charge.  Management was more influenced by my emotions – was the destructive trader more in control?  Likely answer should be to engage in more plans for how to manage the stop – when and where to shift it.  Discussed this with one of my trading colleagues.
  • T141: Destructive trader was more in control.
  • T140 & T142:  Good spotting of the setup – good trading.

Part 2 Split between good & bad trading

  • A good chunk of the session was spent trading well. And of course a lot of sitting on the hands. However there were some streaks of bad trading.
  • Good trading: Spotting of setups, clean patterns on DAX.  Position management on  DAX positions.
  • I still seem to be picking the levels quite nicely – look at how my lines often overlap with levels where price consolidates or turns – a lot of the time!

Part 3 How can proficient trader have larger influence?

  • By slowing down at times and check that the technical reviews are in fact accurate.
  • Having more concrete plans for managing the stop
  • Planning the handling of situations where price gets close to the target and then retraces – i.e. what could have happened for T139 if I had not been stopped out
  • Would I have closed out the trade prior to the Weekly Inventories release?  Close out ½? Plan ahead!
  • Planning ahead allows objective/calm decision-making – whereas making  decisions on the spot are more likely to be influenced by emotions (and thus the destructive trader)
  • Reading the chart – on T141 – notice the huge amount of wicks to the bottom of the candles at the $49.75 key level – this shows strong support.  And there was possibility of market going for a gap fill – which did happen – thanks to Mr France for pointing this things out.  Read what the chart is telling me – not what I want it to say to me!

Part 4 Examples of good and bad trading

  • Bad trading – being overaggressive and consequently not reading the charts carefully enough – example here is the assessment of the descending triangle at the $50 level for T139.
  • Being too emotional/subjective with SL management on T139
  • Mistake on position sizing calculations for the first DAX trade – did 4 mini-lots instead of 3.5 mini lots – not a huge mistake – but I should always get these details righ

Part 5 Reasons for bad trading

  • Being attracted by large/sudden moves in the market, and then acting too quickly (eg. T141)
  • Not planning ahead (see notes under point [3]).
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One Response to 4/3 – 5x Trades completed in last two sessions + psych review

  1. Pingback: 4/9: Trading Update | Trick or Trade

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