20121102
Long 2 NQ 2683.25, 2683.75, 2682.5, +2.0, -2.0, -1.0
Long 1 TF 725.8, -0.4
Long 2 YM 13164, 13164, +10, +10
Long 2 TF 823.1, 822.7, +0.6, -0.2
Long 1 TF 823.1, -0.3
Long 2 TF 820.9, 820.3, -1.2, -0.7
Long 2 TF 820.5, 820.1, -1.0, -0.5
Long 3 TF 819.2, 819.0, 818.9, -0.5, -0.3, -0.2
Long 1 TF 819.5, -0.4
Long 1 TF 819.1, -0.1
Long 1 TF 818.3, -0.4
Total YM +20
Total NQ -1.0
Total TF -5.6
Losing days should be the best days to learn from. From the technical side, there was little to clarify on entries, but the weakness to be identified lies mostly in trade management and the mental side. As for the technical entry side, today's gap-up, grind-down vertical opening was much like we've seen so much of lately. If you keep your eyes out in at least 3 contracts, there are usually signals with which to participate in the early downtrend action that are models within my plan. ...but not today.... And eventually, a key reversal signal holds for attractive recovery gains. ...but not today.... There were reversal signals at support numbers in key places along the way down, and each gave a minor bounce that could have allowed for a small partial exit to pay for the trade. But 2 of them did not provide for any exit, and hit my stp's almost immediately after entering them. The final set of trades were all taken with tight stp's, fishing against the action which seemed to indicate a bottom, but in fact, were taken without actually having the trade plan buy signal to enter with. This is kind of revenge trade behavior. You believe you know what the market is trying to do. Half or more of your trade model is there. And your head is screaming 'get in before you miss it, you idiot'. But in truth, there was nothing to miss, so the additional efforts to position for the reversal that seems so clearly there added 2 more points to a loss that was already -3 up to that point. Don't trade to get even with the market. Better to miss the opportunity altogether even when your intuition is right, than violate your trade plan that keeps you in the better probability setups. If today is destined to be a losing day with the trade plan that works far more often than it fails, don't add to the losses trying to recover and 'get right'. And now I'd like to end with a firm resolution and a conclusion that sounds like 'lesson learned', but I have a feeling that I will need to reread this entry quite a few more times in the future in order to shake what is a near irresistible impulse in trade behavior.
