As I’ve written lately, I’m avoiding fading unless it’s with the ‘trend’ (either intraday or the value area trend from MP chart). So I really disappointed myself when I took a short today right after the open. The VA direction is clearly up (even if yesterday was just a few ticks lower than the previous day, it’s still overlapping in an up trend) and the day’s direction was up. So why did I try a short? I really can’t explain it. I just broke down.
And reading the trading book I’ve been reading, I am thrilled to see I’m not the only one! Peter Brandt writes about trades that weren’t in his plan and even says that he’d be more profitable if he skipped certain subsets of setups. Wow. A professional trader who has problems trading his plan strictly. I love the humbleness of his book and I can’t recommend it enough.
So back to my trades.. I will not beat myself up over it I will just accept that it happens and journal it and work to prevent it or at least reduce the number of occurances.
My first trade stopped out -1 pt. My second was good for 2 pts. So I finish +1 pt for the day (times 2 contracts). I wanted to hold my short for a gap fill (my original plan) but I realized I shouldn’t have been in the trade at all so best to exit it and learn my lesson with a small profit.