Today, the markets took a break after a powerful uptrend day yesterday. It was a boring, choppy, narrow range type of day. So does that mean my day was also boring? Not quite. Here's how my day broke down:
Was patient, but only for so long. I then entered a sub-optimal trade (it was NOT a formal Diamond Setups
alert) about an hour after the open likely due to impatience. It ended
up being a full stop out. Yuck. Not a good way to start the day, since that usually triggers more losses. And it did.
Although I was down for the day primarily due to my first losing trade, I
had confidence that I could come back, even if it remained a choppy narrow
range day. After a few short scalps working on the resistance levels at the
highs of the day, I entered yet another short position and scaled out
half. That gave me an opportunity to let the 2nd contract run with little risk and go to lunch.
While I was out, the trade got as much as +7.50 in
the money. When I returned, it was still about +5.00. However, I did
the unthinkable and let it stop me out at b/e! It was obvious I did not
have a strategy in place for this trade and treated it as a gamble.
This type of rogue trade usually gets me out of sync with my strategy
and triggers more losses. And it did.
Early afternoon: I
continued to be out of sync with both the markets and Renato's calls.
He had about 3 calls today, all winners. He clearly stated that the conditions are very difficult and that only those who are profitable for the
week and aggressive traders should be trading. I took another full stop loss trade based on a
non-strategy (a rogue "why did I take that in hindsight?") trade in addition to other trades that took me even further down the
into loss territory. I can't keep making the same mistakes, so it was time to make a change.
Late afternoon: I was not expecting
nor did I wish for another "one lucky miracle trade" to get me out of
my loss. That would make me look lucky, yet again, assuming the markets even produced such a move on a day like today. I decided it was time to regroup and focus only on a
scalping strategy due to the choppy and narrow range conditions,
and because there was one particular timeframe that continued to
work very well even in these challenging market conditions.
I wanted to chip my way out of this the loss with small
consistent wins, but unlike my prior crazy attempts to scalp, I
had a solid trading strategy and methodology on my side. Time to put it
to the test!
Bottom line results: I took a nearly $600 loss and
worked it up to b/e in the final 1.5 hours with 12 trades. That's about
+12 ES points. And based on what I learned, next time my execution
should be more effective which should lead to better utilization of
* * * * *
Friday, October 28
Total gross profits: $50.00
Total trades: 22
Contracts per trade: 2
NOTES: Check out that crazy cumulative P&L. Even though this is "only" a SIM account, it was still a tough experience. As far as I'm concerned, I'm trading real money.
No big trend to fight
today, only choppy narrow range conditions and my usual mental
challenges. These types of market conditions really bring out my propensity to be
impatient with entries. Which leads to rogue trades. Which leads to
losses. Which leads to more rogue trades.... But the late afternoon was a
test of my ability to regroup and refocus. To best capitalize on these
market conditions, I chose to aggressively scalp trade using the Diamond Setups system and made +12
over 1.5 hours with 12 trades. Now I'm very tired!
* * * * *
The weekend is here, and after an intense week trading and studying the
Diamond Setups system, I'm going to do my best to rest my mind. I can
honestly say that I was mentally fatigued by the middle of this week. I
will need to do my best to incorporate a way to protect my emotional and mental state of mind, as well as
maintain my physical health through continued exercise.
But as tired as I
am, I can't wait for Monday!