Tuesday, July 24, 2007

July 24 PL -3k

Screwed up by placing a 10 lot scalp long on ER2 before it made its treacherous descent. Let a 1k day turn into a fat loser. I'm absolutely disgusted with myself. Thinking I can get a small profit on a 10 lot and then I get kicked in the face. If I had stuck to the plan of using the correct position size, today could have been a great day. Instead I feel like quiting and I feel disgusted with myself. I told myself short only today, and somehow I screw myself over like always and go for scalp with a 10 lot. Trading is all about using the correct position size at all times. The one trade where I go for a 10 lot scalp I get absolutely crushed. IDIOT, IDIOT, IDIOT. WTF were you thinking. Never again.


Anonymous said...

Perhaps you should try some behavioral or cognitive therapy to change this recurrent pattern of gaining confidence, becoming overconfident, and then wiping out several sessions worth of gains.

If your goal is to eventually become a prop trader, consistency/risk-adjusted return (like you had earlier this year) is paramount to % return.

Jeppetto on 6:12 AM said...

you know, John, sound like (a) you are too harsh on yourself, and (b) FWIW, since you definately know how to trade, your lapses seem to me psychological. Brett Steenbarger has a great deal to say about that, not just the nyse tick. I'm sure reviewing his blog and maybe posting a question could help you. just my 2 cents here

Dinosaur Trader on 9:20 AM said...


Your slump is similar to mine. You do well for a few days, making decent money and then WHAMMO!

If possible, set an automatic loss limit on your execution server. Meaning, if you lose a certain amount, say, 1k, or whatever you're "comfortable" losing, adjust it so it automatically puts you on liquidation only mode.


Anonymous said...

Stop this "scalping" and go for the real moves. For most contracts (e.g. YM, ER2, GC, CL), I wouldn't even think about taking profits of less than 20 ticks. If an important point of reference (POC, VWAP, serious support or resistance) is less than 20 ticks away, don't trade, and never take a profit just because it is there. Partial exits at reference points are fine. Only trail your stop once there is a good structure (lower high, higher low) to place it, and let price action do its thing.

leon t on 4:30 PM said...

john, i can't say i understand your strategy. i see it works for you. and hopefully it'll work for me. once i understand it. all i can say i see it works.
what does not seem to work is the psychology. once i took a test given by van tharp in which he identified a bias i had.i felt compelled to trade even when there was no edge. i attributed it to having come to trading from a profession in which you are paid by the hr. $500 dollar days were usual when working on a daily basis.some times more. the absence of that made me nervous, what was i doing?. yet, i gave up on that endeavor. i came to grips with not making as much in trading as i could in my field. yet i wanted to change fields and the market interested me more than what i was doing. so i downsized, i took away pressures, and made myself a promise not to trade until i had a system, which matched my personality. i'm still working at it. yet, being one of those who lost the mill in the year 2000. mostly from lack of knowledge. i know that i can make a lot of money as long as i control my emotions and my gambling instinct. and enjoy the process. no lies, no pretense, no saying one thing and meaning another.
in short, i see you make daily sums, which take a lot of people years of study,only to give it back.
maybe if you consider how much you make as compared to(fill in the blank).
you may see it as a well paid job, which, when circumstances allow it , will make you rich. hope this helps. enjoy the blog enormously.

Derek on 4:34 PM said...

don't trade until you know why you are getting into a trade and where you will get out. it sounds like either you don't have a workable trading plan yet or, if you do, you don't really believe/trust the one you have.

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