Confessions of a newb Part II

Discussion in 'Psychology' started by mgabriel01, Jan 17, 2008.

  1. So in the interests of building a better psychological mouse trap I have 3 observations

    1) I am pretty certain its pointless to try to guess whether the market will shoot up or plummet tomorrow because its oversold or is totally bearish --- I have no idea what its gonna do based on that kind of reasoning. So I am not gonna buy into something or short it because I 'think' its gonna do something

    2) I am working up the courage to fade an anticipated opening gap if there are observable conditions supporting the trade between 9am and 9:30am. If the gap doesnt happen under those conditions- I won't do anything

    3) I 'am' absolutely convinced that if I do fade the gap --- the market will turn against me and I will lose anywhere from 500-1500 bucks before I get stopped out. So the psychological game is to make the trade anyway. We'lll see what happens

    4) I am still sitting on a bad BSC trade @ 90 and a bad AMSC (thanks stoney) trade @ 26.75 ---- I refuse to get shook out on those and have sufficient capital to wait until both go to 0 and still not seriously affect my account. This is very bad reasoning ---- but it takes alot of time to get ones head straight on this shit

    so tomorrow should be interesting to me - to see if I put real money on my plan
  2. ok so that was 4 observations
  3. So I took the trade

    sell short at open @12277
    stop loss at 12497
    cover at 12280 ............. filled @ 11:21

    p/l $485

    next one is to buy 10 points below R1 (12092)
    stop loss at 12060
    trailing stop at 12212

    we'll see

  4. buy @12090
    stop loss @ 12060 --- 1 point off the low :)
    sold @ 12115

    p/l +$125

    will make only 1 or 2 more trades today
    and try again monday
  5. on further reflection this thread probably belongs in journals
    so I will record my trades over there
  6. The puzzle continues

    I made the last trade and made 500 bucks

    Looking at the futures tonight - and thinking another gap to work tomorrow

    It will take a larger set of stones to work that one tomorrow

    maybe it always goes jus like this

    whatever success youve had until today, dont mean much 'tomorrow'

  7. So I made the trade
    in at 11663 to fade the opening gap up

    It wasnt so hard after all
  8. OK, you're down 100 pts and counting ... what's the plan now? :eek:

  9. It was a good learning experience watching this gap fill
    and a good psychological excercise

    I did not have the discipline to hang on to see it fill completely -- but I did make some money
  10. So while this gap was open I decided to continue to trade it
    lucky I got out with my skin -- good educational day

    another notch in the psychology of ... "Stick with the damn plan!"
    (attached p/l shows how 'the plan' was not in-fact followed)

    extra lesson at no additional charge:
    Dont whine about missing a $3K opportunity and settling for 500 bucks
    Tomorrows another day

    gonna spend the rest of the evening talking my self into not worrying what the everybody else in the market is doing and just work on the setup and the stops

    On the good side
    the dumb ass buy I made on bsc at 90 back around christmas has almost caught it self up
    #10     Jan 23, 2008