I hope I haven’t been overly negative in my review of trades and my performance but I suspect maybe I have. So I plan to focus on the good as well as the bad in order to provide a good balance. Today I had a good trade. I say “good” instead of “great” because I cut it a little short but I did much better than usual.
The VA trend is down (that’s an understatement) and I knew I wanted to trade the short side for the European morning session unless we had an open drive up. At the open price just stalled. ES was at a resistance zone and Stoxx was at a resistance zone as well (specifically, a CLVN). So I got short. I put my first target at the pivot point and my second at the pre-market low which was yesterday’s VPOC.
Here is my main chart:
And here is how I traded it. It’d be so nice to have these markers on my main trading chart but I don’t think that’s possible.
Here’s my DOM after my first scale where you can see my second target:
Some things to note:
- Usually I enter early. So I’m trying to purposely enter slightly late. I did a great job here and price didn’t even go against me one tick. If only I could do that every time!
- I saw selling getting weaker and buying interest so I took my first target at +10 ticks which is about what I’ve been going for on ES. I think my ability to read the market is getting better as I’m often able to get out right before a pullback or reversal. However, what I need to realize is that any move will have little pullbacks and that shouldn’t take me out of trades.
- Price went on to hit the pivot which was my first target and then stalled there. It made a higher low and I saw selling getting weak so I took profit on the 2nd half at +13 ticks. I like to get 16 ticks on ES (4 pts) so this is about average.
- That little consolidation turned out to be a bear pennant and price broke below and hit my original 2nd target.
Things I did well:
- I was not early on my entry.
- I am able to see shifts in the order flow that will cause a pullback or a reversal
- I got 10+13 ticks which is a decent win for me.
- I stuck to my plan and traded only short
Things I can improve upon:
- Pullbacks and consolidation are normal and shouldn’t cause me to exit my trade. I need to confident in my targets and be patient. I need to get over the fear of losing.
- There was another short setup on ES later on and I didn’t take it, although in my defense it was not a really strong setup.
My search into my trading inefficiencies has led me to one recurring theme: Fear of Losing. I have decided to tackle this with all my force and do everything necessary. Tony Robbins says when creating a goal one must take immediate action towards that goal. My immediate action was I started reading Trading on Target: How To Cultivate a Winner’s State of Mind. The market was pretty slow so I read Part I. So far I like the book. I would say the majority of it doesn’t apply to me personally (but probably would apply to the average reader) but it is worth reading for the parts that do apply. I don’t seek a quick fix to my fear of losing problem, but I do hope I can learn more about it and how to overcome it. I pass on a lot of trades that probably have positive expectancy just because they’re not perfect. And I realize that my perfection is not the most efficient. Recognizing and admiting this is the first step.
This blog has become extremely personal lately. It’s not always easy to publicly write about one’s faults. But it’s very helpful for me and helps to confront these issues, and I hope it is helpful for you too.