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Today marks the third day of the combine. I did not trade on trade date Wednesday, April 29th. So don’t worry, you didn’t miss a post. Yesterday, the market was sideways for my entire trading window. There were no trades to be taken. I’m very happy for my trading today, it was back to normal.
Greed, not fear of missing out (FOMO), but greed. That is what did me in today. I could have ended the day with a $300 profit but instead ended it in a $1500 loss. Meaning I gave back yesterday’s wins and then some. I’m confident that I’ve conquered FOMO, it’s been several years since I felt that fear.
I am back in the trading combine! What a great start too. I made a slight adjustment to my trading rules over the weekend. They are not codified and I am not worried about it. Ultimately, I decided that I’m done letting winners turn into losers. If I average $700 per day then that’s $14,000 per month. I was up that much last Friday (day 17) and ended the day down $140. There’s no reason for that.
This trading day started as I planned earlier this week, trading the evening open. Price was lethargic but it proved to me that the strategy is feasible for the evening session. I traded for two hours before calling it a night around midnight. In that time, I was able to open and close two positions.
What a difference being the right state of mind makes to trading. I was able to process information as the market provided it. This allowed me to enter trades that complied with my trading rules and allowed me to manage the trades well.
If I were trading live then I would not have traded today. This day proved to be similar to day 7. I woke up really tired after having a long night. Regardless, I still traded. Why? For the same reason I gave on day 7.
The beauty of trading three markets is that I have options. If you recall, last week I limited myself exclusively to ES (S&P 500 Futures) so that I could focus on developing a trading strategy. That worked great because it forced me to simplify my process. However, it also showed how limiting myself to one market could also severely limit my profitablility. ES was mostly sideways all of last week. Since I use a trending strategy, I need price to move and not range. Even though last week was profitable, it was not as profitable as it could have been.
My trading was phenomenal today!
The simplicity of my rules allowed me to judge when to open a position and the maximum number of contracts to use in that position. I was even able to gauge which time frame to take the trade in – the 5 or 3 minute chart. That all of this has taken me less than three weeks to achieve makes me extremely happy.
No positions were opened today due to ES being sideways for my entire trading period. I took today to lay the plan to add CL and GC back into my trading. The bulk of today’s post will be analysis and the action plan.
The challenge of sticking to one market is it can severely limit profitability as you wait for the proper setups. Adding two uncorrelated markets can provide more opportunity.