14/8 – Trader Fitness, Emotions, and detailed chart analysis

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!!)

529 eurusd aug13 

532-535 eurusd aug13 

531 dax aug13 

537 nzdusd aug14 

538 dax aug14

NZDUSD

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.

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7 Responses to 14/8 – Trader Fitness, Emotions, and detailed chart analysis

  1. fuat says:

    Your system tends to produce quasi random results as you mentioned before in one of your previous posts.Don’t blame your emotions for your losses.I don’t think you can reach the success you aimed with this syle of trading, one day.I would say good luck to you but my belief is this has nothing to do with luck… ( maybe just a little)

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    • Hi Fuat, thanks for your comment. So you are saying that based on the way I trade, you believe that I cannot become a profitable trader? Would you be willing to comment on your reasoning for this? I would really appreciate that.

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  2. fuat says:

    Your results are telling that you are not a profitable trader,not me George..Just think of it.This means also that what and how you trade is(mostly) wrong.Market is telling this by a loss message if you get it.So, if you want the answers, you need to find them alone.Here is the recipe; A clean chart, a few horizantal line,lots of brainwork.And enless desire to explore uncharted teritory in financial World.İf you are eligible, it pays off within a few years.Never give up.

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    • Thanks for elaborating – very appreciated!

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    • Fuat, I did have another think about your comments. I do actually feel that what I am doing right now is pretty much what you have described as being necessary – I did start with a clean chart and added things that I see (support/resistance from higher timeframes, round numbers and pivots for the fx). I have added some simple EMA’s and now looking to add a Stochastic indicator. I have also removed some items over time. I am working very hard and trying many approaches and perspectives (i.e. the brainwork). Yes I do have an immense amount of interest for the markets. I would beg to disagree with you that what and how I trade is “mostly wrong”, because I am at least breaking even and thus beating the transaction costs. So I am doing better than if I was placing trader randomly. This would imply that my approach is on the right path, but still needs to get better in order to make profits on a weekly/monthly basis.

      I just thought that I share my view this. In any case, I am glad that you shared your thoughts, and hope you will do more of that in the future. Thanks again and good trading to you 🙂

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  3. fuat says:

    Hi George,”Mostly wrong” can be true if only your equity is lower then the starting balance of your accnt.That’s a detail only you know. So it was just a guess…Don’t take it too seriously.Let me ask you something ; are you left handed ?

    Liked by 1 person

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