Yesterday was a mixed day. My first trade on the bund was great, 240 euros. Real. That’s about my daily average for the bund over the past 2 weeks so I decided to do the rest on sim. And I ended up making some more on sim so that was great.
And then the ES session. I was on total tilt. I saw another trader on Twitter get short and instead of sticking to my plan I found reasons to get short with him. And then he had his stop around 3 pts so I found reasons to justify a wide stop that is completely not in my plan (I use 6 tick stop max). And then I saw the real setup so I took that.
ES had gapped up refused to even start filling the gap. Instead of believing in the market-generated information in front of me, I held on to my beliefs that the market was going to at least partially fill that gap. Much to my peril. I continued trading short and continued losing. Eventually taking a 10 pt loss on that first position. I almost broke every rule I have.
This is very strange because I have been improving. And like an alcoholic who “has one little drink” I slipped up. Thank goodness it was on sim. Not that that is an excuse, just glad I can learn from the experience without paying money.
So I think I’m not yet ready for real money trading with my current trading plan (and I think the trading plan is not complete). I have a few more issues to work out. The cool thing about journaling and tracking my trades is that I know exactly what they are. Writing about a total screw-up day is not easy. But I’m tired of reading tweets & posts of traders doing everything perfectly. I think we can learn more from reading about a trader’s mistakes. Mine were not recognizing the strength of the move up and in not following my plan.
I’m also monitoring the bund behavior during the european afternoon session (US morning). I’m considering trading 100% bund only. The question is: Do I do better on bund because it’s the bund or because it’s in the European morning. I plan to find out. I know ES too well, been trading it for 3 years. And I think that can be a disadvantage as I “think” I know what it “should” do. The economy, earnings, economic reports, the stock market, etc. It all impacts ES in a very visible (although not intuitive) way. With the Bund, I know nothing about it other than what’s on the charts and I think I trade much better that way. I don’t watch the news and I don’t know anything about the European economy and its impact on the Bund.