Mar 192012

Last week I did a great job of trading my plan.  I was strict and the results were good.   Today I slipped up.  It happens, we all make mistakes.  As long as we learn from them it’s a part of the growth process.

I missed the long at 99 because I was too slow to make the decision (I considered it risky because VPOC was just above at 1400.50 and I saw selling there) and when I finally saw it was going to work it was too late to get a good entry.  After the double top it retested 99 but there was no signal.  So I didn’t take advantage of the long opportunity.

So what did I do?  I forced a short.  I thought we’d drop back down to test IBH and I thought I could pick up 3 pts there and then get long IBH for 1406 which would have been an awesome trade.  So I entered on a signal but it wasn’t at a zone.  I invented a trade.  I knew my mistake so I did what I’d do if I was flat – got short in the zone on a signal.  I exited the entire position for +1 pt.

Had I been patient and waited to get short at 1406 (in the zone), I would have had very little MAE and would have had the necessary emotional capital to hold the winner down to 1403 area for 3 pts.

Fortunately my mistake didn’t cost me money, but the 3 hours of torture being upside down on my short was punishment enough.

One common characteristic I hear in the emails I receive is people appreciate my honesty.  I hope you will benefit from my experience and we can all learn.

I will try not to let that happen again.  I must stick to my key areas and I must enter on signals at those key areas.

  2 Responses to “Review of Monday 03/19/2012”

  1. I’ve recently watched a video how someone trades eminiplayer zones and he will have standing orders in the market at these levels. Reason being once price gets to your level, the level you have predefined in your premarket homework, then you should not be hesitating and/or looking for more setups. I’ve got similar impression from FT71 and others. Think about how you can execute your plan e.g. placing orders before market reach your level. . Happy Trading.

  2. Phillip – I saw that webinar and it was a really good webinar. However, remember that Scott doesn’t trade full time and leaves his standing order in so that if he’s not there (away from his desk or sleeping) he won’t miss it. So that makes sense for him. Does it make sense to always leave orders there? I’m not sure but it is something I’m studying.

    Currently I’m looking for one of my signals to enter my trade and so there isn’t any hesitation or decision-making, it’s really simple. I’m seeing how that works and deciding if I did better that way or if Scott would have done better.

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