Lethargy, that’s the word but not me, the market. The market has been mostly sideways during my trading window this week. Leaving little opportunity to make big money. The S&P 500 futures market (ES) rallied over 50 points overnight, a $2500 move. If only I didn’t need to sleep!
Fear – that was the emotion of the day. Interesting how we unkowingly create expectations of our performance. I apparently started the day with an expectation of profitability. Confident that I would make this the third consecutive day of profitability. I’ve been doing this long enough to understand that all there is to it is follow the plan. There will be profitable days and unprofitable days. So long as the plan was followed, then it is a winning day.
The second consecutive day of profitability! This makes me happy not just because it’s profitable but also because it shows my strategy is working. Mostly it demonstrates that my risk management is correct. The best part of that is that implementing the risk management strategy is very simple. That is key!
Overall, trade performance was solid. I entered trades that made sense, met my rules, and I effectively managed my trades. I especially like how I managed risk today. Should this be a profitable week then I will re-enter the trading combine next week.
Distracted – that’s the word of the day. This is one of the challenges of trading with a job. My job is on my mind even when I’m not at work.
I started the day later than usual; up at 6 am after having a long night with my son. Outstanding work tasks were taking mental space from the moment I got out of bed. While trading, I was getting ready for the day. If that weren’t enough, my family was up earlier than usual.
The day ended $1300 down but that could have played out differently. I was trading through many distractions that led me to stop trading early. The last trade of the day could have undone my losses and even made me profitable, although by a small amount.
There has been an immense amount of progress over the last three days. The method I’ve chosen has, at the very least, reduced losses. Again, small sample size to make a claim like that but in this game – you’ve got to relish the small victories.
Frustration – that is what has set in over the past couple of days. I feel like a complete totally newb. This is the longest I’ve gone without a profitable day or week. Two weeks ago, prior to officially launching operation enduring resolve (OER), I made $9000 in one day of simulation. This day started, again, with a $2000 loss using the TSTrader platform. It drove me up the wall! I followed my trade plan for everything but one trade, so not 100% (ok, I didn’t follow my trade plan).
Followed my rules today but it didn’t not prove profitable. However, had a I been able to trade during the day then it would have been a great day. ES had a strong trending move today. What I have noticed is that I am trading the duldrums between the London open and the US open. For the past couple of trading days, I have noticed really nice moves during the London open – 3am to 6 am eastern time. I start trading at the end of that window. The markets have been calm (i.e. not trending) between 6 am and 9:30 am eastern.
Today was a great day! I followed my rules…that always comes first. The markets worked in my favor and I made $2,655 in simulation. That was the result of three trades. Let’s dive in to the analysis.
I really let myself get beat up in this session. The market was not trending and I was not in the right frame of mind. The evening ended with a loss of $2900 dollars. That is $100 dollars less than the maximum daily loss. I obviously need to rethink how I’m approaching this exercise.