One of my primary goals for September was simple -- gain control of my overtrading by minimizing the number of trades per day. The successful control I had through most of September surprised me (to average about 3 trades/day). But as we approached the final couple days of the month, I let my overconfidence get the best of me and ended on a bad note.
More significantly, I believe the minimal number of impulsive trades I had for nearly a month made me think I finally overcame my biggest challenge, I became overconfident and started to think the forbidden -- I now deserve to crush it and end this
month with big profits. Yeah, I started thinking about the P&L.
The only thing that got crushed was my psychological capital.
In September, I had minimal regards for P&L since the goal was all about minimizing the number of trades per day. So with the limited number of "bullets" per day, when I finally got into a trade, I found myself swinging for the fences more often than not, getting stopped out at breakeven many times even after being up 2 or 3 points and more. It was a bit hypocritical, saying P&L was not important and yet still holding on for big moves.
So for October, I'm going to add on another simple goal -- every trade will have a +2.00 ES profit target, no more. I may exit earlier if conditions warrant, but I will NOT be holding for the big winners. That will happen in the future once I start scaling out of entries with multiple contracts, and then letting a runner run.
Therefore, I'm going to continue to keep my goals simple and easy to track for compliance:
1) Average about 3 trades a day (focus on solid setups)
2) Profit targets at +2.00 or less (lock in higher probability profit targets)
In the big scheme of things, I feel pretty good that I was able to maintain control for a decent (at least for me) stretch of time. So now, it's time to just step it up and execute. Let's do it.