Total gross profits: -($225.00) -4.50 ES points
Total trades: 6 [1 scratch]
Execution score: 50%
Opportunity cost: $200.00
Unfortunately, there is still some rust in my system and a day that could have been breakeven or slightly profitable, just wasn't meant to be.
A combination of a setup that I will always take that just didn't work, in addition to some trades that weren't managed well after the entry, sprinkled by relatively well contained rogue trades, resulted in a day that was relaxed but not great.
The execution score of 50% leaves a lot to be desired and my opportunity cost shows that I should have had a breakeven day.
Next area of focus - scaling out
I noted several areas of focus in my prior post, but one item I didn't note was moving up to trade multiple contracts. Based on the what I have seen, the whole concept of scaling out will generally reduce risk (assuming they aren't rogue trades), while still keeping open the option of having a big trade based on letting your remaining unit of contract(s) run.
Changing the plan mid-stream
Since I'm only trading 1 contract right now, a typical mental challenge I run into is whether I should get out at my +2.00 profit target, or whether I should let the trade run a bit longer. Making these calls mid-trade isn't the smartest way of managing for a trade, at least based on my current experience and skill level.
I'm quick to enter / slow to exit
I've discovered that one of my strengths is to be very patient and letting a profitable trade ride, perhaps even too long. What's interesting is that this strength of holding on and being patient with a profitable trade is directly inverse to my ability to patiently wait for the right setups to enter. In other words, I am impatient and trigger happy to get into a trade, but very patient and slow to get out of a trade, especially if the open trade is profitable.
Next step - trade 2 contracts
So it's time to adjust my trading plan and incorporate 2 contracts into my trading so that I can play to my strengths. .
- I'll exit the first contract most likely at +1.50, and then raise my stop up to -1.50
- Let the 2nd contract ride to either the next target level, or let it ride and let the markets tell me when to exit