Friday, January 18, 2013

One thing I do wrong:

I  didn't trade much all day.

Eventually late in the afternoon I was really tired, and bored, and then finally, my will-power was done and I tried to short IWM.  I did not have a signal.  It was slightly up for a little while but never got up past a few bucks.  I eventually stopped out for a very tight loss (good thing there -- I honored the stop) but I knew right after I placed the trade that I was trading based on my opinion and hoping we were too overbought.

Well, there were some divergent signals -- but the CHART had not turned and there were also plenty of confirming signals we would finish at the highs.

It's easy to make money but I need to watch out after a losing trade or after missing a trade that I don't take bad trades to try to 'make something happen'.  This can be a really bad habit.

 I paper traded in the morning and made $210 in /gc and then another $150 in /cl.  By the end of the day, I was up $20 total.  I just gambled the paper profits away -- which is bad form.  But on the positive side -- my focus can be very good in the morning... clearly I start out sharp.  It's the afternoon to really monitor my emotions and decisions.  This is something important I know about myself and must remember.

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