Arrived in the office around 1pm planning to only trade the afternoon session. It seemed the markets were still a bit muted following the Easter break. Increased R to £125 as planned. Took trades on DAX (+1R) and Cable (scratch). My goal was to take 3 trades but I only got two in.
Carefully reviewed the Psych notes from recent days and did a small “mood-enhancer” exercise. Then reviewed the charts of dixie, dax and several US dollar pairs. Noted the strength/weakness momentum across the market. Noted the daily pivots on the charts for the forex instruments.
(completed Wednesday lunchtime – not feeling overly positive at this point in time for some reason – why not? I had a great day yesterday with splendid company in the morning, profitable trading in the morning and then good skypes with my nephew and sister in the evening and finally a beer with a colleague – so why am I feeling not overly positive today – is it because I am losing thus far in the present session??)
1. In terms of entry the proficient Trader was in charge. Entry was only made once a retracement had occurred. Entries were not massively swayed by emotion. In terms of position management the Proficient Trader was in control – I say that because I did not play around the position too much. I followed my generic rules where I shift the stop to entry once price has gone well into my favor. I also just let T1 sit there and wait for price to hit it. Over time I might be able to squeeze more out of extending T1. That said, I entered the DAX position very soon after entering the office.
2. The afternoon session was spent trading well (didn’t trade in the morning). Often I am biased to conclude that if I did just two trades, with both trades doing ok, then I have must been trading well. I don’t think that this is a valid presumption.
3. Not sure what I could have done differently – maybe have a crystal ball to know that I should have exited Cable a couple of pips off the low?
4. Good trading – disciplined, calm trading – good analysis of the market. Bad trading – letting all the profit evaporate on the Cable position? [I am deliberately trying to interfere as little as possible with my trades – this includes trying to pinpoint when price is turning]
5. Bad trading – i.e. not protecting the profit – a result of incompetence?
Points from the checklist – which ones were relevant?
Additional thought: How can I figure out whether I am trading enough or too little? If setups are clear then I take them. What is a setup – I can tell from all my experience in the market, without putting too much structure on it. I should be able at least six setups a day, across the markets that i monitor. The markets that i monitor can change from one day to another – it depends on where the momentum is – it depends on what the patterns look like.
Took six trades today – as planned.
1. Who was in control? In terms of position management – Proficient Trader – didn’t do anything crazy or influenced by emotions. On the last two trades, taken after lunchtime, I manually closed both positions for small losses. I didn’t feel very comfortable with them, and was then convinced to close the short Cable trade when I re-remembered that the FOMC minutes were going to come out tonight – and therefore i should expect the movements to be fairly muted. I was fairly patient in getting into these trades. Bear in mind that most of the time I could be waiting a bit longer to get in at a better price – but then at other times it seems to work out just perfectly – e.g. shorting DAX on retrace to 12,075. At no time did the Destructive Trader take control.
2. All in all traded well, but there were a few times were my confidence was a little low.
3. Proficient Trader could have had more influence if I had been a bit more patient and wait for the decent setups – for clarity? Had also considered long Cable trade early in the morning and also long and short FTSE at various points – don’t discount the FSTE – the spread is tight on that one too.
4. Good trading: Preparation – key levels, trend, pivots, looking out for technical patterns, attention to news and squawk, consideration of Dixie and correlation between instruments. Bad trading: ?
5. What led to the bad trading – N/A?
It seems that the quality of the Psych reviews is dropping a little bit. Remember that the Psych component is a key component of the trading operation.
What items of the “checklist” came into play today?
- Good trading: 2, 3, 4, 7, 8, 9, 10, 11, 12, 15, 16, 17, 18, 19, 20, 21, 66, 67, 68, 34, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46-50 Didn’t implement points for increasing the influence of the Proficient Trader.
- Bad trading: 55, 56?, 58 (on cable).
Here are the net results of the trades taken (with R at £125):