Some Light, Finally

I spent hours last reviewing my trades since June 1, 2009. I learned a great deal about what I am doing right and wrong.

First, ill talk about the bad. The past few days I have been gambling. I just trade to trade, all without thought. I am not a scalper, so this is very destructive. There is a rush when I right, and a crushing feeling when I am wrong, but I know better. I made 58 trades, 48, 54, 46 and 49 trades on the days I traded without any thought or game plan. I lost $1000, made $2500, lost $4000, lost $1200, lost $2200. Clearly this does not work. I looked back and noticed I had been doing this a lot. I just got away with it at first, so it reinforced bad trading habits. I also saw I was buying highs and selling lows without thought. I took big losers where I did not know when I wrong. I reversed and just jumped into the markets blindly.

Now for the good. When I put together ideas and thoughts, and wait for my entry levels, I can make money. When I am patient and limit my trades to around 15-20 trades, and really wait for good setups, I can do really well. I can definitely earn a nice living if I keep this discipline. I must be honest, it can be very boring, and that my problem. Also, when I know where I am wrong and I just get out, I do well too. Bottom line, I can find good scenarios and make decent trades with thought and patience.

Today I came in with a very easy and simple game plan. start small and build from there with good ideas and scenarios. I was trading smaller than I normally do, but obeying my plan. I finally caught a 25 tick winner in the euro and made about $1,000. I then sat patiently and followed my rules for a little while longer, adding a little to my day.

However, I lost it a bit at the end, got pissed off and took some very big swings. Luckily, and I stress luckily, I made it back and called it when I got right near my high. I walked out up $1300, and it was great because I basically followed my rules and I still had a lot more to do right. I can do this, I can make money when I do the right thing.

I am going to tweak my plan for tomorrow and add some new things. I need to keep this up and do a lot more of the good and less of the bad. Patience and thought are the keys to this. Avoiding the gambling is also very important.

Lets try one more trade and one more day of good things. Patience until at least 8:30 or when oil stats come out. Small size and build from there.