Early start to the day. At the desk just before 7am local time (6am London time).
I started to make some preparations. I scored 7 out of 10 on the psych assessment. That said, I was nevertheless feeling tired and was thinking quite a lot about various family/relatives things. That did seem to impact on my concentration. I felt as if I had too many things to do in order to “adequately” prepare for the trading session and felt that i would not have enough time to do it (dude – if you are the desk at 6am London time and still complain about not having enough time – then something can’t be right!!).
I felt that my preparation approach was too structured and that I was trying to fit a square peg into a round hole. I just couldn’t analyse the market properly. I didn’t feel confident. I took a trade on EURJPY (entering at 6:35am!!) – see charts below – which I closed a few minutes later when it looked to be going against me.
STOP IF THE CHARTS DON’T MAKE SENSE TO YOU
Being a retail trader, I am able to “not” trade if I don’t feel up to it. Maybe I don’t feel up to trading every day that i rock up to my desk. Bear in mind that I missed half the trading sessions in the last fortnight, yet was able to turn a big profit. It clearly is a fair bit about the quality, rather than the quantity. On days like today when I just can’t seem to make sense of the charts, it is probably much better for me to refrain from trading – I can do some trading-related work but I should not look to put on trades. This is one of the luxuries of being a retail trader, and is one that I should exploit. How likely is it that on a day like today I would be able to turn out a profit by the end of the day? Add to that difficult market conditions (for instance) and I would likely be giving a lot of money to the markets – 1R. 2R, 3R etc… Instead I only lost 0.35R today. Minimise the damage on the down-days.
It’s good to take a note of what type of situations give rise to the conditions in which I (you) don’t feel competent/confident to trade. That may help me to reduce the amount of times that such conditions arise.