Strat Check –
Finally back to the excel models after a while. I realised in the last two months I have been shitting quite a bit on my strategy and taking bouncers that were not gaping down enough.
I did some revisions and the stats popped back up to the good numbers that got me to play this set-up in the first place.
Only going to look at >15% gap downs for bounce plays henceforth. The problem with this is that these set-ups come rarely. The road to success is a long one and I will have to keep growing as a trader.
This was a bloody month as I clocked in my biggest losses since July last year. So what happened?
- I got cocky! – The first two weeks I started taking trades rashly and quickly. I jumped in way too early and my timing was waaaay off. I simply did not respect my strategy.
- I was chasing stuff and that is definitely a bad sign.
- I did not wait for the trade to come to me and maybe was too eager to succeed
- Risk Management! – This is a big one! This resulted in my overtrading. I forgot about risk management and should not have taken trades with only a 1 to 1 risk/reward ratio or less. I have to think about this more next month.
- Sizing – When I got scared I downsized. I also downsized when I was playing pullbacks and that was definitely not a good strategy.
Next month I will be different and change my ways. The market has certainly humbled my dumbass this month but I continue to persevere, learn and strive forward. I will be more careful this month and make more wise choices as I continue on this long, tough, arduous but ultimately rewarding journey from zero to a hopeful hero.
I have decided to re-do my rules for Jan.
- Put my potential new set-up on hold and focus again on Bottom Bounce
- Trade only 1 ticker at a time because I am not ready for two yet
- Play pullbacks correctly by waiting for a new high.
- It is definitely ok to miss the first pop. Wait for the pullback and play.
- Trade less! – A missed play is better than a losing play.
There we go. Let us now tackle January again. Restart fresh again.
Today is the last trading day of the year for me. I have come a long way and today is certainly a momentous day for me. This is officially my very very first green month! I traded with discipline and overall did well. It is time to slowly turn up size next month and hopefully the green streak continues.
Net P&L: 271
I have got a long long long way to go but here we are. I am ready for 2018! Bring it on.
To god be the glory, for the best is always yet to be!
Btw I am dropping 10 day analytics from now on and doing monthly reports instead.
So this week has been pas mal. There are some weeks you end thinking that although I may not have necessarily earned the desired results, I have definitely moved in the right direction.
Things that have went well in the last few weeks:
- Started focusing only on one set-up that I have been trying to develop
- Learnt my mistakes of not trading set-ups I have not tracked
- Understanding more and more that good trades can be red trades and bad trades can be green trades
- Respecting my stop level and not being shaken out
- Restructuring of commissions (happened over the weekend) – very excited about this one moving forward!
- Developed my journal to be more insightful through pivot tables
Things I definitely can improve on:
- Letting my winners run!
- Selling into pops better
- Understanding how to size in more efficiently
- Respecting my stop level and not being shaken out (yes this appeared in both sections)
- Timing my entries on pullbacks
Key Takeaways through studying:
- Do not trade the order flow and watch the chart
- Hard work is a necessary but not a sufficient factor for success
- The journey is long and tough, its important to recognise that and also to recognise the habits I have been doing correctly.
- The best trades are also always the MOST hardworking and have shitty work life balance.
So things did not really look too good again in this last set of 10 trading days. Step forwards in #2 and then back-forward and finally back again in the last set.
It is quite clear the things I need to work on –
- If i do a deeper dive on what has been working for me, I realised that the bottom bounce set-up truly has some potential for me to develop further. I did suffer a big loss on it because of an emotional trade in this set but truthfully it the one that I could actually take to another level. I gotta keep at it and be confident about my positions and let my winners ride more. The caveat is that it is a one a week set-up that really isn’t sustainable in the long run if I want to make a career out of trading.
- I have a problem! I see a new set-up and I kinda of jump into it trading without studying it long an hard enough. You see me doing that with the multi-day breakout set-up. I have got to stop this! It is eating into my profits significantly. So – stop trading set-ups without tracking for at least a month!
I hope just focusing on these two things will help me in my next set.