Trade Reviews: Lessons learned & Pre-Session Biases

We are mid-way through the trading week.  Thus far I have opened and closed ten separate trades.  Each trade has been documented and reviewed.  Did I make any mistakes in these trades?  What lessons can I take from them?review

Throwing some random thoughts out there.

FYI, For other recent trade reviews, check out these:

Trade #539 – the price action interpretation here.  Is this the type of pullback/out-of-steam combination that I want to see?  Probably not, particularly towards the end of the session, around 4pm.

539

Trade #540 – only take trades that meet my criteria, rather than being based on generic interpretation of the charts.  I was quite confident about in wanting to short USDJPY.   The fx pair did indeed end up going to my targeted area, however I did not enter the trade on the basis of a valid setup.  Although I might have good reason for my view, it opens the door to excessive subjectivity, and to self-doubt once the position is opened – constantly asking myself whether I should or should not be in the trade and trying to figure how to manage the position.  And this can have spillover costs for the rest of the session in the form of sub-optimal trading.

540

Trade #543 – the reversal pattern needs to look very strong in real-time. Raise the threshhold. Did I (subconsciously) lower the threshhold because I was ‘keen’ to get short at the level? [See discussion on pre-session biases below.]  The same comment could be regarding Trade #544.

543

Pros and Cons of Pre-Session Anticipations/Biases

General issue: Finding the right combination between reading current price action and pre-session anticipations.

Writing down my anticipations at the beginning of the session is something newer for me, and I am finding it is helping me to focus, and to help me knowing what I am looking for.

A risk associated with this is being too ‘married’ to my initial interpretations (or biases) and this then distorting my interpretation of price action building throughout the session.  There could also be a risk of confirmation bias – looking for information that supports/confirms my initial view, and not paying enough attention to information that is suggesting otherwise.

Mediocre vs Strong setups

Another point coming out of my reviews.  It seems that there are some setups that are not ‘wrong’ or ‘invalid’.  But they are nevertheless ‘amazing’.  An example is the short AUDUSD trade below:

542

The week goes on…..

[The Salvador Dali graffiti was created by Zabou and located close to Spitalfields market in central London]

This entry was posted in Psychology, Reversals Strategy, Trend-Following Strategy. Bookmark the permalink.

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