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 😉
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 ).