I traded well in the US morning. Then after dinner I saw the big move up and I had been watching 84.00 as that was resistance earlier in the day. I went short with a 1/2 position. Then it went up to the CLVN. I had known that was a possibility ahead of time so I entered the rest at 86.50. And it kept going up. I should have taken a 6 tick stop but I cracked under pressure and didn’t. I was then watching the naked vpoc and I normally always short those so I did at 89.50 and I closed everything out at 87.25 for a half point profit.
I get an F for that trade and the ES session. First, shorting a new high is NOT in the new trading plan I’m working on. In fact I wrote this during lunch:
By defining the trend in this way, it will not be possible for me to fade a new high or low of the session. This is extremely important.
Can you believe I wrote that and then stupidly shorted the market as it was making a new high? Then I stupidly didn’t stop out from my first entry at 84.25. A 6 tick stop would have had me out by 85.75 for -6 ticks. Then I could have shorted 89.50 and gotten at least 3 pts down to the CLVN. So 3 – 1.5 = 1.5 points profit. Without more than 6 ticks risk.
Instead my way I put myself at more than 6 ticks risk and if the market had continued up I would have been in big trouble. I would have given back a lot of gains from the past few weeks.
So by writing it out this way I got to drill it into my head that I must keep my stops and I must follow my plan and avoid this situation all together. The worst part is I got away with it again!
So I’m aware of the problem and it’s a lot of work fixing it but I’m on it. I think I’ll go back to Ninjatrader with the ATM I have the automatic stop. With X_Trader I always neglect to set my stop. I know that sounds stupid & irresponsible but maybe I can trade more disciplined with the Ninjatrader DOM? Ok next step I’ll start putting 6 tick stop systematically with X_Trader and see if that will work.
Sorry for all the ranting but I figure if I humiliate myself publically maybe I’ll be less inclined to repeat this bad behavior. If I do it again I’ll post a picture of me naked. Just kidding. And maybe you’ve done the same thing yourself? Maybe you’re doing it now. If so let me know and we can kick the bad habit together.
Update: The P/L I posted was from Nov 24, I forgot to change the date. I just posted the correct date. I’ll fix the excel so that if the date isn’t current it will be highlighted. I didn’t notice because the results were practically the same as Wednesday’s with only 1 tick difference.