Monday, February 14, 2011

A Great Moments with The Wrong Action

The undiscipline behaviour on me really killed me. Sometimes I just want having quick bucks and it backfired me.

Like today's chronology:
I was trade Crude Oil with heavy discipline and I was looking for one shot $500-$1000. Chopped around but with proper trades management, I was able to breakeven. The suddenly my buy order won't get filled and unconsciously took the higher price. I was realized it's too dangerous so I got out and managed to breakeven on crude. I was so angry because I just missed $300-$400 at least at two opportunities, while my account just slightly in red. The trades was just slammed back, ate me on par or little profit. That's should be fine IF my last trade was filled and I'll definitely booked $500, or at least $300. After missed the chain reaction, I wass off to grains.

I planned to bucked quick profit from grains. In fact the grains were not following anyone. Crude Soared, No affect. Eminis up, no effect. It just went down!! I ate my Stop Losses stubbornly kept longing and finally I gave up. Afraid of mounting losses and felt so misfortune today just stopped me from trading.

The only mistakes I made today was laziness, looking for quick money from a feeling. I was so sure the grains at least going up a bit. But that's not happening. If I kept trading I might stopped more from Crude Oil. My system is like a chain-reaction method. U trade from the beginning, do best to survive from chopped, and when there's directon 50cents-100cents, stopped trading and have a nice day. So if I stopped trading, the links is broken. There's okay to start again if lucky enough after you leave there's only chopped. But I leaved it and there's two major moves happened. If I stayed in the trade, I definitely already booked profit and end the day for crude.
But since I started the new chain reaction mostly on chopped mode, chances are I might get chopped severely enough until closing bell. It's very important to stop trading after gaining big moves. High chances the market will chopped around, like trading 101, trending, consolidation.trending, so on. This bugger very hard to identify. Actually almost every single trading there's consoliation. But somehow, the trending that make good money.

Strategy for tomorrow, I will keep the chain reaction, but with more tighter profit target. Targeting 20-40cents on early trades, taking profit early if chopped early, and try to ride the wave if I had green or slight red early trading result. This strategy should do well today, sigh if I just not changing the Stop Orde to Stop Limit, today's story will be different.

2 comments:

  1. this is a nice article

    www.brettsteenbarger.com/Behavioral%20Patterns%20That%20Sabotage%20Traders2.doc

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  2. Tq TST,
    The focus on process rather than result really hit me on the head :)

    ReplyDelete