But before we get to my excuses, here were the stats (on SIM) for the day:
Wednesday, October 26
Total gross profits: -$237.50
Total trades: 14
Contracts per trade: 2
NOTES: After a disorienting morning, I had 2 trades prior to lunch. It then looked like another steady trading day ahead. However, in the afternoon and especially the final hour, I had 12 trades. Some issues and delays with my order execution system threw me off, as well as sloppy errors on my part. The trading system itself worked fine, but the I had some "challenging" moments. It could have been worse, since I was down as much as $500 (open P&L) at one point.
And Now, Here Are My Excuses!
- I was disoriented. Since the chat room was offline in the morning due to technical issues from the web service provider, so I
felt like I was flying blind (probably because I was!). So I was out
of sync during the morning, and had to try and get my rhythm back
throughout late morning and early afternoon.
- I was frustrated. There were a few trades I was sure would
work, especially the short at the high at the opening -- and they
worked. But I was not sure whether they were part of the system or
not. This created a slight level of frustration. Letting a profitable
trade that was several points in the money get stopped out at breakeven
didn't help, either.
- I was impatient. The slow morning tested my patience in
the afternoon. As the markets approached the highs of the day in
addition to some critical resistance levels, I was not patient to wait
for the best setups. I've only been following this system for a few
weeks, don't try and "make it my own" just yet! I need to do a better
job of following Renato.
- I was sloppy. These markets can be quite thin and shoved
around quite easily, especially with the European rumors. This requires
total concentration and proper preparation to understand what your
next move should be. Some of my analysis was done incorrectly and
resulted in trading off of improper data. The ES can move very quickly, so if
I'm too slow or sloppy, I'll get steamrolled.
- It's the brokers fault! As surges in trading volume took place,
my DOM/order execution system took up to 30 seconds or so to return
fills or cancel/replace confirmations. I really haven't really
experienced this before and resulted in some trades getting botched up.
I admit, I'm used to instant fills, so when nothing happened, I kept
pressing the send and cancel and reverse and whatever other buttons I
could to "help it", instead of just pressing it once and waiting. So all my orders and cancellations ended up getting stacked up in the queue, further confusing the system and myself.
The Bottom Line
- I was lucky, this could have been a much worse day. On the plus side, even with all the challenges, my emotional state (although slightly heightened) was actually well within my normal range.
- Focus on following and understanding Renato. That's why I'm there.
- In doubt with my state of mind? Then don't trade -- take a walk, or take the day off.
- The broker's order execution system is acting up? Well then don't trade! And setup a backup contingency account at another broker.
- Just got hit with a full stop out? Get up and take a little break. I know that there WILL be another HIGH PROBABILITY trade around the corner, IF I am patient.