April 13 2010 Overlay and Trades

This is a tough post tonight.

I produced a perfect prep this morning managing to identify the key area to work off of within ticks in tough price action containing lots of congestion and minor support areas.

Then I executed a near perfect long trade based off what I had planned for.

After seeing the pullback push against me be a few ticks then thrust up the structure was looking extremely bullish to me.

I had no doubts that the price was going to the highs. Then I covered the trade break even.

Why did I do that? Because I thought the price was going to roll over and retest the low with a likely washout. I did not doubt that the area would hold.

I even knew that from where I entered (early) that this trade had 4-5 points risk in it if I was to give it a chance. I accepted the risk because I was confident in the probability of the trade working.

I was both convinced the price would move to test the highs and also convinced that it was going to attempt to wash me out.

It is not like I fear holding trades for long periods of time intra day. I was in this one for 1 hour and 10 minutes. I refused to believe that the price would hold where it did and make a run during lunch.

That is the problem

I refused to believe. I refused to believe in the entry holding and I refused to believe in myself even though I was confident in the trade and premise.

I basically made a bet against myself. I am often correct but seem to bet the opposite.

I could give a very advanced presentation on different ways to trade this area and way I chose the area that I did but it is meaningless in the context of what happened today.

The failure was do to a mental issue that needs to be fixed. There is no doubt about it.

My read was so precise that I believe I got myself out at the most extreme low tick of the pull back. Had it gone down 1 more tick I believe it would have tested the low and given me major heat.

I knew exactly what I was doing and what was going on with the action. I sabotaged the trade then immediately looked to re enter.

It is like I was playing chicken with myself.

This is not OK.

I am pulling myself out of my winning trades with precision.

There is nothing that needs to be practiced, discussed, strategized, or reviewed. It just has to stop if I am going to accomplish my goals.