Long story short, I’ve had two very bad trading days, blowing almost 11 grand. (without doing impulsive or discretionary trades)
The reason the last two days went wrong so badly wasn’t that the market didn't cooperate, that’s something a trader has to be prepared for, the reason is that after 10 years of trading I still “bend” the rules and it comes back to hurt me (and I know I shouldn’t be doing this in the first place).
What you see in this screenshot are my S2s on TOS. You see that the current batch is up about 6 grand. What you also see is the capital in each/every trade (right column). While most of my trades are about 10 grand capital per trade (which results in about 1% risk of my account per trade) you see two rows with 20 grand and one with 40. The 20 grand ones are:
NETL (up 1k9) and RDC (breakeven) but the 40k position one is down almost 3 grand. The trade is PCLN and I entered after earnings. Nothing wrong with the setup, however greed has struck once again and I went in much larger than on the other positions (also chasing the entry big time to make sure I don’t lose out), and needless to say it doesn’t work and the market is teaching me a lesson.
While S2 is great and an awesome hedge during volatile times, it doesn’t protect from trader stupidity and greed.
As a 10 year trader I can’t believe:
1. I gave all my 2011 profits back and then some the last couple days
2. I forget about the variance in any trading system
3. I still fall for the same mistakes (less often but still) I fell when I started
Anyway, just thought I’d share cause being cocky doesn’t pay, only making money does, and following the rules is definitely a more consistent approach than playing a big swinging cowboy. Good luck all, it’s dangerous out there.