I know that I am at my worst from a trading perspective when I have low emotional capital - meaning, I start taking random trades (revenge trading) and I don't let my winners run (low confidence in existing trades). My ultimate goal is to take those trades that allow me to maximize my emotional capital at any point in time. I am starting this journal to hold myself accountable for all trades with the end goal of improving my trading and becoming a profitable trader. I will consider myself to be a profitable trader when my average winner is larger than my average loser and my win rate is at 50%. I will plan the day ahead and trade my plan.
The things that I still struggle with and prevent me from getting to profitability (this will be updated from time to time as I add items): I am able to take losses, but taking multiple losses in a row really damage my emotional capital. Low emotional capital causes me to revenge trade and to not let winners run. What I will monitor: Total average MAE v. MFE - overall, versus after a loss and after a win. A high MAE with low MFE means that I am trading scared and there is a low probability that I will let my winners run. Having my average winner be greater than my average loser is absolutely critical to long-term profitable trading. Average time spent between trades - overall, plus after winners and after losers. I want to make sure that I keep a reasonable amount of time between trades (30 min) so that I am not revenge trading.
6/8 Plan - we are opening up near Friday's point of control and didn't have much movement / news overnight, so my expectation is chop at the open. So I will sit on the sidelines until one side comes in and pushes us out of the chop. On the downside, I'm expecting support in the 83.50/80 range and then around 73.50 / 73.75. On the upside, I'm expecting resistance at the 95.25 and then at 2100. Also, overnight delta is net long, so I would expect this to neutralize on the open. Trading Results: Random trade on the open, full stop out for a loss. I noticed that I justified the trade to myself before taking it (justification was that it was getting ready to break short for a quick gain - it didn't).
Shorted at 88.75 at the open - took a 2 pt loss. Shorted around 10:30 at 96.50 - scratched it and reversed long at 96.50 with a target of 2101.50 and I got it all back plus some there. I kept my stops large (no stop outs today) and my position size small. I'm doing a good job of keeping it very simple (didn't reverse around 10:30 - trend day up, go long and target next key area). Going forward I will be increasing my stops to "black swan" levels and I will keep mental stops / lines in the sand for when I am wrong. Easily the worst piece of information I ever listened to was to keep a 6 tick stop when you are intraday trading the ES.