I have changed the name of the Post Market Review to Accountability Report and Commentary. I think Post Market Review makes people think I am just talking about what the market did that day.
I have started logging observations here just as I would in my private trade journal. It has already helped me. Last night I declared no more break evens.
Today I got into an extremely tough trade that was contrarian to my default premise. There was a client here in the office watching all this unfold.
As soon as I entered the market violently moved against me. I immediately started complaining about the trade and second guessing my entry. This is because I have been in a bit of a break even grind for the past few sessions.
I then posted the trade in our firm educational room and complained some more. After about 45 minutes, I had a bit of a positive excursion. I had my hand on the mouse and was about to go break even.
Then I referred to last night's post and said "no more break evens, I am done with that". I let the trade work. Ten minutes later, it moved to my exit area.
The blog works. Saved me at least $300.00 on that trade.
My trade GPA is a little low today because I identified the opening short and posted it well before the market opened but failed to execute. I am not going to get too technical on why other than I was looking for too much confirmation.
What did I re-enforce today?
1. Playing defense does not work.
2. Continue to not use break evens. Let your trades open up.
3. Take the trades that do not feel right. They often work.
4. If I feel to good about a trade, there is a probability of it not working.
5. Inverted risk assessment: my risk is not taking trades or using break evens.
6. Take your losses. You need them to win.
There is a full length trade video posted above. You can expand it to your whole screen and see it. It is long but you can fast forward to the key areas. Very good learning tool.
I wish I could have seen stuff like this my first couple years trading.
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