Didn’t trade Wed. Got to the office late, around 8.45am. Assessed myself at 4.5/10 on the Psychological Assessment, which is below the threshhold required for me to trade. Spent the day documenting and reviewing my trades, and thinking about my trading.
(Saying that I did actually just enter a long DAX trade, just after 4pm because the setup more or less jumped from the page!)
Trades from Tuesday, 9th June (Trading Office, London/UK)
So let me summarise the last two sessions – I lost 1.11R on Monday (4 trades) and lost 3.84R on Tuesday (8 trades) – these trades entailed the following:
– I had three trades where unscheduled comments regarding Greece triggered volatility that worked against the trades that I had taken (that was just bad luck – it’s part of the job – it could be avoided by trading from higher timeframes and/or to some extent by not using limit orders for entry).
– I had a couple of trades where I left a lot of paper profit on the table – I always beat myself up afterwards – either for giving back unrealised profit and ending up with nothing – or bagging something and then realising that I could have bagged a whole lot more) – this is really frustrating for me – what plays more to my personality? What I rather have a higher win rate and a lower RR, or a lower win rate and a higher RR? A higher win rate would reduce volatility in my results. Lower volatility in results would allow me to fluctuate less emotionally, which in turn will help me to trade more competently – to be in a better state of mind. Plus, from a Kelly perspective – a higher win-rate/lower RR combo would allow me to risk more per trade. I think in terms of position management, the first step is that I get the entry right – this will allow me to set reasonable stops and potentially allow me to move the stops less.
– There were three setups that i took where I was too aggressive in entering – on a EMA-relative basis
– I think I need to narrow my focus – I need to be able to look at the chart and say “There – that’s my setup – that’s when I want to be in the market”
– Why do I take setups that I later mark with ‘X’? What am I thinking at the time? What psychological issues are at play? What would Staanberger say to me if I was lying on his couch? Is it greed? Am I scared of missing out?