After taking a big hit and trading like an a$$ yesterday, I needed to come into the day with a lot more patience, clear head and go out a winner...regardless if it was only $1! The mental aspect of trading is the hardest part I have had to deal with. I always say that traidng is 90% mental and 10% skill/system/edge (whatever you want to call it). Why? You can have the best system in the world, but if you can't handle the emotions of what happens when you're in a trade (good or bad) you're never going to win over the long run, especially if you are a discretionary trader like myself (I don't have an automated/set system). Mike Tyson said something about getting into the ring that is analogous when it comes to entering a trade..."everyone has a plan until they get punched in the face!" I had a plan coming into the week and I got punched in the face yesterday (fucking hard)! Not what I planned, but today I was able to respond positively and get off the ropes. I know I have a lot of work to do, but today was a good day to get back on track.
I was much more patient this morning and did not take my first position with any size until almost 11AM. The market was up and down this morning and after a really strong open, it faded. My first profit was on a long and then I switched short after watching the price action. As a discretionary trader that relies on chart patterns and price action, I find I am at my best when I don't have a strong bias towards the market. Just take what comes. By 11:30 I was up $13K (a very good day). My rule is to not trade past 1PM. That said, I saw an almost perfect setup short around 3PM this afternoon that was confirmed by the DOM (depth of market). I picked up another $11K short to finish up $24K and traded less than my self alloted limit of 300 contracts total (an effcient day). After a loss of $86K yesterday, I still have some wood to chop but it's a start. Need to focus on the small wins and risk management. Rome wasn't built in a day!
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