Total gross profits: $100.00 +2.00 ES points
Total trades: 5 [1 scratch]
Execution score: 90.0%
Opportunity cost: +$112.50 +2.25 ES points
At the end of the day, I thought it was yet another perfect execution day. Yay!?!? Upon review of my first trade tonight, I was wrong.
The first trade,
which ended up being a full stop loss (+ a few extra ticks), ended up
being a trade that should have been closed with a small loss due to a reversal signal. So that trade gets half a point ding towards my execution score. And since
it should have been closed out based on a reversal signal, I should
have gone immediately long.
In other words, my -2.75 loss should really have been -0.50. And since I
missed getting on board the "correct" trade that ended up making +2.00,
the true opportunity cost was +4.25. But for the record, since I don't count missed trades, my opportunity cost will be recorded at +2.25.
In this next example, let's include the missed trade, and assuming that the rest of my day
was the same, I would have ended the day +6.25 vs. the +2.00 that I
actually booked. Isn't it amazing how one simple error could drastically change the outcome of the day...or maybe not?
Add to that, a couple deliberately missed "Rogue Grove" trades (I didn't take
because they were not in my trading plan) that accounted for +4.00 in
potential profits...it could have been a mythical +10.00 day...on a day
that I thought was not very easy to read nor trade. If Rogue Grove continues to consistently book paper profits, he may have to make a formal appearance.
So how do I truly feel about today?
There's no regret, no sense of
revenge, no sadness, no anger. Just a feeling from deep within which is
at peace to stick with the plan, follow the process, focus on
execution, and to always try and stay one step ahead on the next potential trade.
And I know that if I continue to do so and minimize my errors, the P&L will most certainly improve.
As I continue down this journey to challenge myself to improve every day, it won't be very long before I begin
seeing some +10.00 days make an occasional appearance.