In this post:
- Review of the day’s trading performance
- Areas for improvement
- Lessons Learned
- Action Plan
Trading Day – Tuesday, April 28th, 2020
Trading Combine – Day 2
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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.
The story today was that I saw price moving and I wasn’t afraid of not making money. I actually felt the greed. I WANTED TO TRADE AND MAKE AS MUCH MONEY AS POSSIBLE. The trades met my rules for entry. Here’s the interesting part though. I decided that I was not going to trade ES or CL because the price action was lethargic and the uptrend was choppy. So, what did I do? I traded ES and CL because price action was too good to pass up. What?!
Didn’t I just go against my own analysis? I did, and I paid the price for it. Had I been thinking clearly I would have gotten out of the losing trades long before they hit their stops. I was convinced the trends would continue and I’ll come out a winner. The trends did continue, per my analysis though, very choppy. There was no money to be made with minimal risk.
I’m a good trader, I can read the market and my indicator. Analyzing trades and developing winning strategies is not a problem. The problem keeping from being a great trader is that I need to get out of my own way. I know this is par for the course and will overcome this. I’m not going to lose to myself!
Trades for today:
|Symbol||Number of Trades||Average Risk Size||P&L|
The first ES trade lost $350 and I made the determination that I should not be trading the market because of the choppy trend. RTY, the Russell, on the other hand had a nice smooth trend that I was able to join with minimal risk. That was my second trade of the day.
CL showed explosive price movement and I WANTED IT! I jumped in knowing that it was a choppy trend. I paid the price. It accounted for the lion share of the day’s losses. At the same time, I re-entered the ES market. There were multiple opportunities to exit all the trades and walk away with a $300 profit. That wasn’t enough for me, I wanted more.
Had I not entered CL or ES, I could have ended the day up $635. The market analysis was sound today. The challenges were emotional.
I’m not going to lose to myself!
- I recognized that the CL and ES markets were not tradeable
- I recognized that greed had taken over as it was all happening
Areas for Improvement
This is a challenge for today. Area for improvement? Emotional control? I don’t think that’s quite it. I suspect that I had developed expectations. Those are not good for traders. You can’t expect anything from the market. All that can be done is to follow the trading plan and let the day be a winner or loser. I suspect that I wanted to replicate yesterday’s profits.
So area for improvement – make sure I have no expectations for the day. Not really sure how to make that actionable but I will figure it out.
- Greed is still an issue
- Execute the trade plan as written
- Do not trade choppy markets – add that to the plan
- Let the day happen – if I make $100 then I made money. If I lost money then I lost money. No expectations.