20130409
Long 3 TF 928.3, 928.5, 928.0, -0.7, -0.3, -0.4
Long 1 TF 927.4, -0.7
Long 2 TF 926.7, 926.7, -0.5, -0.5
Long 2 TF 926.2, 926.2, -0.3, -0.3
Long 2 TF 925.3, 925.3, -0.4, -0.4
Total TF -4.5
'Be careful what you wish for....' as Goethe warned. Volatility is the lifeblood of traders. And on many days, it seems our trades are squeezing what lemonade we can from a stone. But on other days, volatility extends impulse waves in both directions right through support-resistance zones and right through our stp-loss orders. However, it can be fairly said of my trading that I was a bit impatient to find the first Low-of-Day to the initial sell-off. The reversal was sharp, and the reaction took price all the way back up to a new High-of-Day, more than I could have hoped for had my early longs survived the deep over-entension. So perhaps my eagerness had some justification. The ingredients for a sharp reversal were all there. But the market rules and we must bend. The best that can be said of one's trading on such days is that a plan also includes loss quotas, and reaching a loss quota curtails one's behavior. There is nothing to do but fold up the tent, no matter how right you almost were.
To get back in the game on the same day after reaching a loss quota, my trading plan allows for taking a short series of paper trades in simulation mode. For this, I must get 2 out of 3 trades profitable before I am allowed to take another trade with real money. I took this exercise today, but lost on the first 2 paper trades. Hence, I'm done for the day. A winning day yesterday, however, keeps me well in the realm of a profitable week. Tomorrow is always 'new life' for a trader ....but only if he curtails any losses so far in the week to within a manageable level. Otherwise, he faces a losing week. A losing week could mean it will take one winning week to make up in the month, and that leaves only 2 weeks left in the month with which to show a monthly profit. Don't let the losses stack up too deep before kicking yourself out of real money trading and back on the simulator. The desire to 'get even' usually does far more damage than the earlier losses themselves. Control your behavior. Have a plan before you ever start trading to curtail your losses after so many losers in a row, so much loss per day, so many days in a row or a week, etc. If you can't perform with consistency, step out of cash and onto a simulator. Find out what's wrong. Respect your capital. It's your primary tool.
