Wednesday, March 28, 2007

March 28 Trade Summary




Last night I stayed up till 1am trading the Euro and british pound on the simulator. I got up late, still feeling crappy from the flu, and wasted the morning watching the currencies and tried trading the swiss franc (CHF) by doing some correlation analysis between oil, gold, and the euro. I then watched oil and placed trades mentally.

I should have been trading ER2 this morning instead, because I have more experience trading it and there was easy money to be made this morning. I just didn't feel in the grove and was hesitant to take my trade signals this morning.

Market Observations:
It seems like we get a pop in the bond futures and JPY every morning and then you just see them getting faded for the rest of the day. Today I watched the morning initial balance, went back to sleep, came back and shorted VAH on ER2, and then took profits too soon as usual.

My thoughts on my Trading performance:
I'm bored and don't feel like trading or doing anything related to the stock market right now. I'm starting to worry because it's been over a month since I've had a losing day and each day the market seems like it is getting easier to read. I've had 2 or 3 losing days this year, with 2 of those days being big losing days. I'm starting to wonder when that next big losing day is going to come. I'm feeling a little hesitant lately and I think I know what it is. The problem is still there. My biggest problem of all. The "P/L". I wish this option on my trading workstation would just go away, as well as the account balance. I believe this is the problem that is holding me back from making more money. If I could go one day without looking at my P/L it would be a miracle. I'm deleting these features from my workstation right now. I don't know if I can hold out without knowing my daily P/L, but I'm going to make it my goal to try to do this for the next week. I tried this last month and I failed. I don't know if I'm the only person affected by this problem, but it is a major psychological barrier for me that is holding me back from becoming a better trader.

I feel like I've been in front of this computer for days. I actually look forward to having to go to work sometimes to take my mind off the market. If I'm not at work or the gym, I'm in front of this computer doing something related to the stock market, whether its trading or research. I know I need to post some charts on my favorite setups, but I really feel like going outside and getting away from the market for a bit. I'm gonna go rent that movie with Will Smith, "The pursuit of happiness", and maybe that will give me some motivation to work harder and become a better trader.

Quote of the day:
During the journey we commonly forget its goal. Almost every profession is chosen as a means to an end but continued as an end in itself. Forgetting our objectives is the most frequent act of stupidity.
-Friedrich Nietzsche

4 comments:

Yaser Anwar on 7:54 PM said...

Hey dude-

I think I've gone through what you are right now, and often do so. What I like to do when I'm bored of the market is take a week off and do something totally crazy- go carting, diving, boxing, watching movies- anything. Maybe read a great wall st. book. Recently I got "The Poker on Wall St.", sweet book. Reading can take your mind of.

As for the P&L- I'm more scared of it than I think I was when I watched Jaws when I 8! However, its necessary. Just look at it and fathom the additional points your missing out. Write it down on paper and be like I'm going to make X amount today, which is 15% higher than my previous amount, that's if the markets lets me.

Treat #s like nothing else besides numbers. Its tough, but don't be affected by them. Market is about probabilities, you're up 1 day and you're down, nature of the beast!

Do some Ari Kiev reading and go clubbing or whatever to get your mind of the markets. But don't trade of boredom, you're hot streak might end, God forbid.

LifePost on 11:31 PM said...

Thanks for the comment Yaser. You've made some good posts lately.

I went to the gym, watched a movie, and now I'm doing my usual blog surfing. I'm going to take the next 2 days off, mainly because I have early morning shifts at work and I need to step back and reflect for a bit on my trading. I'm going to try and put together a good post on some of the trade setups I've been seeing lately.

Next week, I think I need to try and trade without the P/L and see what happens. I'm scared, but there truly is nothing to be scared about. I truly believe trading without the P/L column is a good thing for me, and I need to try it to find out. If I'm a good trader, than my P/L will be fine without me viewing it.

When I use to lose money trading, I would always open the P/L and see how much money I needed to get back to breakeven. I'm sure this has happened to every trader. Viewing the P/L when you are down puts your mind into a state where you take bigger risks and your emotions start to effect your trading, because now you've implanted a number in your head, in which you must achieve by the time the market closes no matter what.

Well the P/L column is doing it to me again even now that I'm winning. By looking at my P/L, I start to judge my trading, and I start to do math equations in my head about how much I could have made if I had made a certain trade. This only takes my attention away from trading and sometimes when looking at my P/L I will stop because I feel a sense of satisfaction for my efforts, but that is the problem there. There are still more trading opportunities and trade signals I should be taking, but now I feel satisfied with what I've made already.

When the market is open I need to focus on every trade signal I get, and then at the end of the day, when the market closes, that is the time when I can judge my trading.

Dinosaur Trader on 6:52 PM said...

Lifepost,

What you write makes it very clear to me that this too is a problem for me.

I took the P&L off today and got smoked, but there was no relationship between the two. I just traded like a madman, plain and simple.

The last few weeks, I've been plus a couple hundred, minus a couple hundred and this is because I'm focusing on the P&L. If I was down I was trying to get back to zero, if I was up I'd take small profits, simply happy to be green.

The P&L is gone. Now I start to focus on the other issues.

Thanks for another insightful comment on my blog. I appreciate the words.

-DT

High Probability Trader on 8:24 PM said...

DT,
I'm sure you'll get back on track. When I start sucking, I reduce size, and wait for 1 good setup, no matter if I have to wait all day for that setup. Another problem is worrying about the money you lost in the prior days, and looking to make that 1 trade where you will make it all back. IT DOESN'T WORK THAT WAY. That's how you blow up. I've been there. Trading for me is about probabilities and trading the right size for the trade.

Subscribe via email

Enter your email address:

Delivered by FeedBurner

 

High Probability Trade. Copyright 2008 All Rights Reserved Revolution Two Church theme by Brian Gardner Converted into Blogger Template by Bloganol dot com