So here are some thoughts as I saw my ES swing trade go up to nearly +50 points in profits, only to then watch it gap up around 20 points against me on Sunday night, and then getting within 2 points of being stopped out at break even today (Monday).
- If this was a live trade (not SIM) I most likely would have exited earlier, probably on Sunday night for about a +20 gain.
- Renato had a buy alert... right below the 1150 area (yes, the low of the move on Friday), so although I'm not sure I would have exited there on Friday afternoon (because weak closes are usually a bearish sign), that was potentially another option.
- I could have done better daytrading vs. this swing Assuming that I
closed this single trade at the max possible +50 points, there were
many daytrade opportunities that could have made just as much or even
more during the time I was in this one swing trade. But...
- Big but... Whether I would have captured all those daytrades and actually made that much is another topic of discussion.
- Quick to enter trades, slow to exit. That's my general nature (even as a daytrader), and the reason I've been able to hold on to this position for so long -- I'm slow to exit.
- My natural Valium? Having an active open position is somewhat like putting my trigger finger on Valium. It makes me much more selective to enter new trades, unless they are very compelling.
- Permanent swing position? So maybe I need to consider having a very small swing position as a way to counteract my need to always have something cookin'. A mini-forex position comes to mind.
- External non-trading diversions There are times
when I feel I'm too close to the markets. It's as if I'm
getting too clingy. So how will I feel when the market treats me bad someday and
I have nothing else to fall back on? Either having other
hobbies and interests or being forced onto other tasks should help
provide balance. Consequently, I believe having better balance will improve my ability to stick to a plan with discipline.
Sure, if I had real money on the line, it would likely have been much more stressful, but either way, I believe this is a lower stress way of become more self-aware with myself.
When I am trading live again, I will likely go back to daytrading/scalping primarily for +2 ES points I might consider swingtrading once I'm trading with an initial position of at least 3 or 4 contracts.
So the question that is getting louder in my mind -- when will I start trading live again? I tell myself I'm in no rush, but there's also a side of me that wants to get back in the real game NOW. Depending on market conditions, I'm thinking maybe next week at the earliest and sometime in January at the latest.