Daytraderpete: Todayâs market was actually okay for my trading system, as I found yesterdayâs to be a tougher one. However, I definitely know that feeling of wanting to âmake it backâ after a down morning. Itâs an urge Iâve come to learn not to fall prey to when it does surface. Iâve found that whenever thereâs a desire to make back for previous losses (whether it be from earlier in the morning or earlier in the week), it only gets worse because that longing becomes a shade that unfolds in front of my eyes and keeps me from seeing the market for what it is and instead I begin see what I want the market to be so that I can get back what I had lost. The result is invariably further losses or missed opportunities since I am no longer reading the market correctly and/or I am relaxing my rules to accommodate my need to make it back. Just keep the same tempo and level of discipline you had when you had the good day and apply it forward to tomorrow. Kermit
on the wrong side of the Brothers Grim news today early on -- then again in the PM when the damn news conference came out w/ the General confirming the killing of Qusay/Uday:eek: :eek: Just below break-even for the day. (also had to deal w/ multiple Tradestation outages ) ... on top of that, there's construction going on at my house AND today was the first day for the nanny we just hired for our 3-month old boy! In retrospect, today would've been a nice day to relax up on the ocean-view deck with an ICY cold one or two.
Seems we had the same day -- and I think we both know that it boils down to discipline. I did well yesterday but wasn't feeling it today even though I started out ahead. By mid morning I was slammed ... Get a full rest, tomorrows a new day and a whole new bag of setups and opportunities. G'Nite All.
Came into the day riding a two week streak and after the morning session felt I could do no wrong. Next thing you know I get stopped out of two positions because of Eiffel Tower fire and lose my composure. Could have left the day with a small profit but churned my way through the afternoon until the close, where I fail to close out my APOL short as it gaps past my 60.55 stop. Covered after CECO's earnings at 62.25 AH. First time in a long time I let a stop get away and I paid big time. One problem I have never conquered is my failure to accept a losing day after a winning streak. My afternoon trading was controlled entirely by my desire to keep a streak alive and had nothing to do with my normal set-ups. I sometimes forget how quickly I can lose money when I do not have complete control over my trading. I needed a good kick in the ass today and the market did its best to deliver.
I was having a decent day then, inexplicably, I let a long position go against me further because futures looked good, the birds were chirping, I was feeling good about my previous trades, blah, blah, blah. Bottom line is instead of a 10-cent stop I ended up taking a 20. Pathetic.
Hey Pete, I think every trader goes through the point you are going through: you reach a phase where some (most?) days you make decent money, and then go on to lose much of it in these "I went crazy" losing days. What solved the problem for me was to set restrictions, and stick by them: 3 losing trades in a row within a day and I STOP! It means the market is either in its random (sideways) mode or I'm out of tune. I shut the computer and go for mountain biking to relax. If I don't follow this and do more than 3 trades, then the punishment for that when I go back and review my trading at night with a more rational mind, is no more trading for a week. I've only had to go through this once, and it was enough punishment watching the market and many opportunities go by but not take positions for 3 whole days (the runaway day happened on a Tuesday). The though of this made me stop the next times this came around. Now it's mechanical. 3 losing trades and I stop trading. Full stop. Iron discipline. Take a look at the following article, I think you'll find some answers there. To manage to get to the next phase of consistent profitability with small controllable losses, you need to minimize the max loss you'll have on a losing day, so that your winning days get you ahead. http://www.themasteryoftrading.com/Articles/firstlesson.htm Regards, Loukas
This year I have practiced correcting this. It has made a very positive difference, some in my trading account, but mostly in my EOD demeanor!
Thanks Loukas, You hit the nail on the head, I need to admit when I am not in sync and log off. I need to come to grips with the fact that there is not need to be in the market all day looking for a trade that is not there on lite volume days. It will keep alot in my pocket. Thanks for the link for the article, it is a good one. Pete