Good Finish to the Week

I started the day like I do every day, I read my fundementals and looked for my technical areas. I was patient this morning as well, and I did not make my first trade until the GDP release. The equity market never really made any clear directional moves today, despite Oil breaking over $66 and the Euro rallying to 1.41. There were a few decent opportunities in the morning, but without much market movement, the day dragged on. I made a few good trades in the morning and I was on my way to having a positive day. (My only goal, after yesterdays complete lack of discipline, was to walk away positive.) Once again I lacked patience, and blindly clicked into the market without having a good trade scenario. I sold the bottom of a consolidation, and the market quickly moved against me. When I should have exited, I froze and tried to rationalize that the market would sell off, but it did not, and it rallied further against me. I lost more than what I wanted, and puked my sell about 12 ticks higher.

Puking that euro trade for 12 ticks was actually a great step for me. Normally, or as I have done this past week, I would have held it once it was past where my out should have been. Today, I got out, and even though I was very angry and frustrated, I sat back and watched as the market moved up another 40 ticks. I would have lost so much, and I saved myself from losing so much by just getting out. Not only did I get out, but I waited and sold at a price that I had severak reasons to get short. This trade was the best trade of the day for me, I held it for a very large winner, riding 30% of it over 50 ticks. This put me back on track.

After that successful trade, I found a few entry points in oil where I was just a little early in my execution, and did not make or lose anything. However, I knew I was seeing the market well, so when I finally waited and found a spot I really liked, I was able to hold on and add another 50% to my profits for the day. Before I knew it, I had made back more than I lost yesterday, and I was able to scratch the week.

The big lessons for the week are 1) holding massive losers takes me out of trading for the day and takes away multiple profitable trading days 2) when I am calm and patient and have reasons, I can identify multiple trading opportunites in multiple markets 3) when following my rules, I can make good money, and 4) when I keep my trading losses small, and let me winners run, it is amazing how fast and how much money I can make on tiny size.

For next week, I need to remember these big lessons and try to adhere to my own rules.