Daily Report · Top Reversal · Trading Psychology

#120 | Red streak | Position Sizing

Trades: 1
Accuracy: 0%

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Small loss here. My adds pre-market did not work so I had to cut them. Then I kept playing around with a position with an add when I felt it was a good time to do so and covers when I thought it wasn’t working. I was constantly adjusting my position to ensure it was within my risk levels.

I am slowly learning that this is what most professional traders do. (From watching videos of how they trade) The good part to this is that you can adjust according to what you see on the charts and it gives you more flexibility in your plays. The bad part is obviously commissions.

Hence moving forward I will restrict the number of adds and focus on trying to slam the trade yet allow some room for flexibility. I do need to continue to do this with some conviction and if you notice, one of my adds was a literal top tick. That was very important psychologically for me as I was having some trouble adding on the first push up to resistance levels. I hope I can continue to abide by my strategy.

 

Oh and yes I did forget to include my equity. Bite me. Next time it will be there.

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Bottom Bounce · Daily Report · Others · Top Reversal · Trading Psychology

#118 – Strategy retire

Trades: 3
Accuracy: 0%

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Today was an emotionally tough day for me. I felt I traded according to plan but kept getting screwed over. My first trade on ACRX – Why did i get scared out? Well I looked at the history of this ticker and every-time it gaped up, it ramped and ended green on the day. Because I wanted to avoid that risk I took it off pre-market. It did work in the end but I feel my decision had some base and I was actually proud of myself when I did it.

The next two trades were also losses. The first, I tried to take a short on this bouncer to play the opposite side as I saw it failing. Instead it hit support and ramped. I cut the loss and then I bought on a quick dip expecting a ramp up. When it did ramp, I did not sell as my target was a bigger move. This reminds me of the mistake I made the last time as well. Either ways, I had a hard look at my recent bottom bounce trades. They were far and few in between. My overall stats was poor as well – a 50% win rate with a slightly above >1 profit ratio. This would be ok if I had no commissions. The fact is that I do!

This leads me to the decision to retire my bottom bounce strategy. It sucks to retire this but it is something I have to force myself to do. I have to focus on the Top Reversals which seem to be gaining some traction for me. I am actually net positive on the month and have a 61% win rate with a 1.14 profit loss ratio till date. This tells me that I got to move into the direction that is working for me and forget LONG-ing for a while. It is super tough to let go of something that I put in almost a year of effort – refining it, collecting data and practicing my trading. I think my personality does not suit it.

Hence my final decision is to park this strategy aside for 3 months and focus on two things for the next 3 months. Consistency in my shorts and building up my size.

Trading Psychology

No trade Monday

A short an important lesson to myself today. I did not trade today! I am saying that proudly. I sat at my screens and shorts were not available for this play I was eyeing. Instead I just learnt and accumulated some screen time.

I know by doing this, it forces me to look for A quality set ups and only trade the best.

Trade the Best. Fuck the Rest.

Monthly Report · Trading Psychology

There is blood on the walls

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This was a bloody month as I clocked in my biggest losses since July last year. So what happened?

  1. 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.
  2. I was chasing stuff and that is definitely a bad sign.
  3. I did not wait for the trade to come to me and maybe was too eager to succeed
  4. 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.
  5. 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.

Trading Psychology

Rule re-enforcement

I have decided to re-do my rules for Jan.

  1. Put my potential new set-up on hold and focus again on Bottom Bounce
  2. Trade only 1 ticker at a time because I am not ready for two yet
  3. Play pullbacks correctly by waiting for a new high.
  4. It is definitely ok to miss the first pop. Wait for the pullback and play.
  5. Trade less! – A missed play is better than a losing play.

There we go. Let us now tackle January again. Restart fresh again.

Bottom Bounce · Trading Psychology

#48 The thin line of success

Trades: 1
Accuracy: 100%

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The lessons of trading are painful the say the least. Started with try to play the move at around 12.35 and took a tiny profit on that. Waited for the pullback to re-enter at around 12.45 and then I saw a hard rejection at 12.60 for the third time and took that as a sell signal.

Just moments later it did what I wanted it to and burst through the resistance. Wow that is definitely one of the worst feelings in trading. To miss my trade by mere seconds. The line between success and failure is so thin. A good lesson learnt and I have to sit and ponder about this one. Would I wait sell again if such a situation happens in the future? Probably, I mean that .60 mark kept rejecting, I feel I did the right thing but its so hard to accept that.

Win some lose some but I think the important thing learnt here is to stick to the rules and trade the chart.

PS: In case someone was wondering where round about 100-130 USD went? Well I have to pay for my platform so that fucks me up a little ;). I know I keep wondering where that disappears to as well.

Trading Psychology · Weekly Recap

Weekly Recap #5

It has been a while since I did one of these but this week I traded on all 5 days. It is rare for me to do so but it does depict my growing passion and addiction to the art. Still being relatively new (based on hours spent studying and in the markets), I made a ton of mistakes. I also made some significant strides but today I would like to just pen down my three biggest takeaways:

  1. Have confidence in your strategy. Many times this week I got scared out of positions quick only to be proven later that the stock did exactly as I expected and according to the pattern that I had studied or analysed.
  2. It is okay to miss set-ups. I found myself chasing things a couple of times even when my target entry point was missed or even worse, was not hit yet. I realised, the markets will constantly provide opportunity and its ok to miss some sometimes. That ticker you been analysing for 2 hours before the market opens just may react quicker than expected or hit a support much later than expected. Its okay if it goes down as a miss!
  3. Trade the chart, not your emotions. This ties in well with the above two. Be patient and wait for you entry. Once entered follow chart patterns to take profit or cut losses. Do not follow what you feel may be the best thing to do at that time. Take guidance from the chart