Comments on Trader Fitness & Emotions
Today I arrived in the office at only 1pm. I had been worn down from trading hard all week, sleeping just 5 hours on Wed night and then pulling a really intense session yesterday with 11 trades of my own (4-4-3, +0.12R) and a couple of hours of futures trading on TY and ES.
Following my arrival, I took two setups – neither of which were very good – and promptly lost 2R. It seems crazy to give 2R so quickly after having worked so hard the last 7 sessions since coming back from France. However rather than put on more trades and blow up more funds, I decided to step back and review the trades that I have done.
One thing I realised this week is that it’s ok to be emotional – however it’s important to channel the emotion into the right direction. This afternoon I was a bit frustrated – however this motivated me to work harder and become a better trader. That was good. If I had let the frustration get to me and then put on more trades. Lesson learned: CHANNEL YOUR EMOTION IN THE RIGHT DIRECTION! (I did also read just that in some trading psychology book recently)
Also I was rather tired this afternoon and probably not in the sharp mindset that trading really does require. The story from an ex-trader friend of mine stuck in my ears – he said his biggest day trading, when he made $12 million (he was trading for a bank) was on a day when he got to the office at 4am, more or less directly from the bar where he had been drinking all night, and was completely hung over the entire session. Well just because it worked for him doesn’t necessarily give me the permission to trade when I am not sharp!
Interestingly, writing this note reminds me of my trading phase on the US East Coast a few months ago. Were my feelings/emotions/preparations somewhat similar to the way they were when I came to the office at 1.30pm today? Could that be the explanation for my terrible trading performance during that phase? Would that impact on my decision to attempt to “reverse engineer” these trades?
And here are some of the charts showing the trades that I took yesterday and today….. (as you can see I am starting to look at more and more minute details of the trades, in order to become a better trader!!)
My “longer-term” short NZDUSD position: This is up (well down) just shy of 65 pips as at time of writing. My initial stop was 100 pips. How can I trade around this position? How can I use it to my advantage. Note that NZDUSD has now been added to my list of approved instruments.