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

 

 

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Others · Trading Psychology

Restart. Research. Review.

So I have not been around for a while. Many reasons but mostly because I needed to regroup my thoughts. Admitting that I had failed on the first try was tough. I knew it was a possibility but its something you only can feel and overcome once you reach there. I had about 900 left in my account or thereabouts. I had three choices:

  1. Fight till the last dollar
  2. Top up
  3. Give up

Choice 3 was quickly out of the question. It was at most a passing thought. Throughout this whole journey, I had loved every step of the way. I paid a tuition for that education for sure but I knew it was just not my time yet.  Fighting till the last dollar felt like i was being desperate and using terrible economics. Opportunity costs started to increase as there were many trades I had to forgo and many that I could not take the correct size on. So what did I do? I took choice number two. I topped up. But this time I knew I had to change something. That was back to the books.

I created excel models and filled my spreadsheets with values. I knew I had to take on a very analytical approach and focus on three main things.

  1. Opportunity
  2. Volume
  3. Volatility

Am I done researching those things? NO. I still need time before I can say properly that I am fully back in the markets. Will I ever be done researching? Probably not, but I do need a threshold amount of data points for my analysis to be even mildly significant. Hence time. So I will be back!

 

Daily Report · Reversal 101 · Trading Psychology

Emotional Roller-coaster #21

Today I have never been more pissed at my trading screen than ever before. The below will explain.

 

Screen Shot 2017-08-03 at 10.09.26 pm.png

TTIM did exactly as I expected. I had my limit order in at 13.84 for 600 shares. Guess what the fuck happened! My fucking, fucking, fuckshit, dipshit, motherfuck cracker jack piece of wanker banker TRADING PLATFORM decides to fuck up. It tells me I got no buying power. I slam that god damn piece of cunt filled button again but the dam dipshit motha fucker decides to fail on my ass again. This time i contact my broker and 20 FUCKING MINUTES later they reply that there was a technical glitch and restricted my BP even though it shows the ‘right’ amount on the platform. I seriously felt like throwing a chair. The perfect set-up comes along and only god can explain why it had to not work at this time.

Breathe. Breathe. Breathe. I counted to 10 and vented my anger at my phone to a dear one. Poor lady had to absorb my wrath. Breathe. Breathe. Breathe.

Then I took this trade below: FTR

Screen Shot 2017-08-03 at 10.42.04 pm.png

No surprises there this one did not work out. The set up was perfect but the gods were not on my side. Lost 10 cents on this. Kept it tight because it started looking iffy and was not going as planned.

Trades: 1
Accuracy: 0%
P&L:

Screen Shot 2017-08-03 at 10.53.30 pm

 

Does not feel good today. Felt like hardwork and planning went down the gutter. To a new day tomorrow.

Trading Psychology

Loss Restriction – A lesson learnt the hard way

So check this:

Realizing I’m not respecting my trading rules I made two changes this weekend.

  1. I put my retarded emotional trading charts on SPEX as my desktop wallpaper to remind myself to not be a clown
  2. I emailed my broker to set my max loss at 150 per day. It is done now. Seriously happy about that.