2nd day back in the office after a long break in the United States – with some great snowboarding and some real amazing company (thanks!!) for the duration of the trip! Talk about feeling refreshed and recharging batteries!
Back with a Vengeance
Spent all day yesterday carefully looking over the charts of DAX, Oil and Cable to see what price action has gone on whilst I was busy tumbling down the mountain slopes. Did one trade on Cable. See the chart below. Lesson learned: When going with a Rectangle Continuation Pattern, a significant break in the opposite direction should probably write off the validity of the setup. I checked through the 35 charts of the trades (demo, live and testing) that were based on this technical pattern and in none of them had I taken the trade following a “false break”. By the way, the only reason I could quickly check through these 35 trades, is because I keep anally (as in anal) detailed documentation. I know that a lot of people say that keeping detailed documentation is not important – each to their own.
Today I tried to resume with testing on Oil 2013 data – I am just so slow at it!! I also took a trade on Oil in the live market – here’s the chart:
(Abbreviated) Psych assessment: So who was in charge of the Oil Trade today?
Proficient Trader – for spotting a good setup on the 15M chart and being very patient in entering the trade, using the correct position sizing, and adopting the pre-determined entry approach (1/2 on stop-entry, 1/2 on confirmation)
Incompetent Trader – for picking up the incorrect timing of the Weekly Oil Inventories release – thanks to the US moving to Daylight Savings Time earlier than the UK – I did pick it correctly for the CAD news (at 12.30 rather than 1.30), FOMC (at 18.00 rather than 19.00) but for some reason muddled up the Oil data timing
Destructive Trader – for staying in the position, and trading on hope, once I had realised my mistake regarding the news – my rule is that I should close trades immediately if a mistake has occurred – such as buying instead of selling, using wrong lot size, selecting the wrong instrument (anyone who trades for an extended period of time will commit these mistakes at some point, and probably more than once in their trading career!). Forgetting about the news qualifies as a mistake that should force the immediate closing of the trade.
Apologies (to myself?) – No time for full Psych Assessment today.
Got a trading buddy visiting a little later for another look at the MT4 coding, and then a traders bi-monthly pub-meet tonight. By the way the entry for this is free – though the beer at the pub is not – so if you are near the City/Liverpool Street at 6-10pm tonight then pop along!!
Also the futures trading on the emini and the US 10-Year futures contracts will be delayed till next week – the programmer is busy right now.