Today was a test of patience. The markets were really slow & range-bound most of the session and then something happened to stir things up. The bund first tested lower. My plan was to get short so I did not take any longs. I did practice some sim trades on other markets to keep me occupied (ended up slightly negative but I wasn’t very selective). I also caught up on some reading.
I tweeted this chart when the Bund appeared to be balancing:
I waited patiently for my plan to unfold, which it did. I went short at the unfair highs. I was slightly early and took a second entry at the next CLVN:
My cost basis wasn’t very good so I just looked to get out with a small profit (8 ticks). I should have been more patient because it dropped down another 5 ticks or so. I’m too quick to take profits and that’s why my expectancy is so low. But on the other hand my cost basis was bad and any pullback back up to the top for a retest would have given me a loss. I guess I’m a perfectionist. If my entry isn’t perfect I’m looking to scratch.
The bund bounced off the DVPOC and then went up to rest the highs. I attempted a short here (not shown on chart), it went against me 6 ticks and at that point I realized I didn’t want to be short and I shouldn’t have taken the trade. The rest of the high was off the DVPOC so we weren’t really balancing now, we were slowly moving higher. So I scratched that trade.
I give myself a B today. I was patient and traded my plan, I just should have scaled out more intelligently on the first trade to improve my cost basis and hold a little longer. But overall any day I trade my plan is a good day. I used to say any day that is positive is a good day but now I realize I need to focus more on trading my plan and the P/L will be fine. Being positive while not trading the plan is not good.