Thursday, March 1, 2012

Road to recovery thoughts

Total gross profits:  $400.00  +8.00 ES points
Total trades:  4
Accuracy:  100.0%
Execution score: 100.00%
Opportunity cost: $0.00

I was given some good advice the other day, as I went back on the road to recovery -- just trade the next 20 setups and simply use a profit target of +2.00. 

The last time I got into a rough patch, I was also very given similar advice to "hit for singles" by sticking with only a +2.00 profit target.  It worked, and I look back and wonder how I could have deviated from that plan.

So starting this month, I'm getting back to basics, and keeping my process as simple as possible so that I can begin to establish focus and trading consistency once again.

After 20 trades are successfully completed, I will evaluate my progress.  Right now, it's all about achieving a 100% execution score, every trading day.  And after reaching a certain profit objective, I will then earn the right to trade bigger, and with bigger target objectives. 

I'm not willing to trade larger now just for the sake of trying to recoup my losses quickly.  Because if there is something wrong with my fundamentals, increasing trade side is basically a recipe for financial disaster.

Some key points for my journey:
  • Focus on identifying the best setups and executing them flawlessly
  • I can not control the outcome of the trade, but I have total control in how I manage the trade
  • Once my trade is closed, the outcome following the trade is irrelevant.  If a +2 trade could have been +20, so be it
Simply put:  I'll patiently wait for the very best setups, enter them without hesitation, manage the trade per my trading plan, and only use a +2.00 profit target for all trades.

We'll see how "simple" and "effective" this plan becomes.  I know it's tougher than it looks, but I'm ready to take on the challenge.  4 trades down, 16 more trades to go until the next check-in point.


Tomross58 said...

Hey Grove,,

Way to go,,,and again I see such of the same in myself that I think you are writing a blog just for me,,,hahaha,
I stumbled this last week after 3 very good trading weeks. A good trading week is following my plan and moneymanagement rules. Profits will come.
Good for you and keep it up. Lets not always not try to fix what ain't broke.


Grove Under said...

Hi Tom,

Yes, I think we're on the same wavelength on many levels!

The fact that you had 3 great trading weeks should be very encouraging, that's really great to hear. Keep it going!

We're human, so when we stumble a bit, I see it as a wakeup call to regroup and refocus.

And great point to stay focused on what works. Thanks for the comment!