In this post:
- Review of the day’s trading performance
- Areas for improvement
- Lessons Learned
- Action Plan
Trading Day – Monday, April 27th, 2020
Trading Combine – Day 1 (Step 1)
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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.
In poker – victory comes from taking profits as you can, not risking more than you should, and throwing away hands that have no promise. Hey, that sounds just like trading!
By both following my rules and aggressively taking profits, I secured over $1,000 dollars today. Had I not been aggressive taking profits and simply followed my rules, I would have made a little less than half of what did. That still would have been a good day but why not let it be better?
Here’s the fact – I trade to make money, not for the sake of making money but to provide for my family and grow an account. Today, I made twice my daily salary in less than 2 hours. So, here’s the reasoning – I shouldn’t pass on potential money earned for fear of not catching a big move, capturing a daily goal is far more important. Also, I don’t want to trade all day. If I make what I want in a few minutes then my day is over, just get on with living my life.
I get some of my thinking from poker psychology. In poker, if you want to win a large championship – as an example the world series of poker – then you employ the strategy of inching your stack up. That’s don’t try to hit a homerun with every hand or try to get a grand slam when you have a strong hand. Sure, you don’t pass all those moments up. However, victory comes from taking profits as you can, not risking more than you should, and throwing away hands that have no promise. Hey, that sounds just like trading!
So, I will incorporate that line of thinking into my trading gospel. One issue that concerns me is an email I received from TopStepTrader this weekend. Due to high volatility in crude oil, they are not allowing anyone to trade CL in their funded accounts. I’m fine to continue trading the market because I’m in the combine (i.e. the evaluation). The plan is to continue trading CL while exploring alternatives.
Step 1 may take me two weeks to complete and I’m expecting step 2 to be another couple of weeks. Meaning, I’m expecting to earn a funded account in early June. Hopefully, we’ll be cleared to trade CL again by then. If not, then that should be more than enough time to find another market; I am thinking a futures currency or the Russell (RTY).
It’s been a great start to the week. I look forward to employing everything I learned over the past 3 weeks and clearing step 1!
Trades for today:
|Symbol||Number of Trades||Average Risk Size||P&L|
Today was another day that required a bit of patience. All the markets I trade (CL, ES, GC) were sideways. Crude Oil (CL), however, had a nice downtrend. Per my rules, I waited until it showed that it was continuing that trend. Success!
CL imploded in a matter of minutes. I was able to capture that move down. I used an old method to move my stop. That is, I moved my stop depending on profitability and price action. It worked well today and it abides by the new "trading gospel" I mentioned above.
- Followed my trade rules
- Was not shy to take profits
Areas for Improvement
- None noted today
- No significant lessons learned today
- Continue to execute trading plan and incorporating moving the stop per profitability and price action (aggressively take profits)
- Sim trade the evening session using my personal account
- Find an alternative market to trade in case I can not trade CL
- Explore swing trading opportunities using this strategy