Well the landmines I avoided last week were still around and I stepped on one today and man did it hurt. I carried a pair over the weekend thinking I had a big edge with the move it made on Friday. Well I was wrong. Realized loss locked in for the spread = -$10,300
. Had I stuck to my original stop loss last Friday, I would have saved myself $7500 today (Friday the spread closed down $2800 against me).
I've come to the conclusion that it is not the pairs that are hurting me but rather my psychology with them. I have been struggling for the past 5 months with pairs and have finally realized that it is time to kick them to the curb until I can come up with a way to trade them in the current environment. Until then, I will break out of my comfort zone like I mentioned in the beginning and trade strategies that I have been working on during my break.
I keep telling myself this is just one day.
Daily Net P/L = -$9000 on 37k shares traded