Today’s trading session (thus far at least) was quite a contrast to Thursday’s session in terms of preparation and execution:
- I completed my 15 minute visualization but also had my mind on an important personal conversation I had yesterday – so my focus wasn’t 100% on the financial markets
- Following that, I did a small amount of prep work – but nowhere near as much as I did on Thursday – I would not have considered myself to be “in the zone”
- Market conditions: What didn’t help is that I was trading into quiet market conditions (a mix of being Monday, festive season and distinct absence of Tier-1 or Tier-2 data, nor any fundamentals driving the market) – this significantly increased the odds of muted price movements
- My first trade was a short on Cable, a reasonable setup. However within the space of 60 minutes I added four further positions, all except one of them betting on the same principle (dollar strength) as I shorted EURUSD, AUDUSD and longed USDCHF.
- All of these trades, plus a long on the DAX, turned into losing and partially losing trades.
- Normally in this type of situation I would kick an empty storage box – however since we got rid off it last week – I had to resort to slamming my fist on the desk.
- Looking back over things it seems silly that I traded like that.
- This in turn gets me (us) into the realm of trading psychology – why did I trade knowing that I had not done adequate preparations? Why did I add more and more trades when price was not moving? Why did I deliberately act in a way that I believe in the long run will not help me achieve consistently profitable results?
- Was this an example of self-sabotage?
- If so, was the self-sabotage caused my a lack of confidence in my trading abilities? Thus allowing my real trading results to line up with a deep-rooted belief that I cannot trade profitably – and turn into a self-fulfilling prophecy. [Do remember that I am actively working to increase my self-confidence in the trading area.]
- What were the emotions at the forefront of my brain when I added all these trades? Greed, needing to get even, anxiousness?
And here are some trading statistics covering the period from 7th to 21st December, in which I completed 68 trades.