Today price did exactly what I thought it was going to do and I still lost money not only that I entered a trade at almost the perfect time I could have entered the trade that moved almost 100 pips in my favor exactly as I thought it would and I still lost money. This isn't the first time this has happened. So what is happening:
Poor Psychology as I keep saying
Poor Analysis - This is something else I realized today it actually isn't just poor psychology it is poor analysis but not of the trade the entry was nearly perfect it is poor analysis on how I should be trading this market for my style of trading. I'm not giving trades enough room to breath, I'm not allowing for the market to do exactly what it will do normally. I'm closing trades when price reacts off a level exactly as I would expect it to? Which is ridiculous if it didn't react off these levels like this then I wouldn't know where to trade at all but I'm actually closing trades at terrible points.
It is not all bad I need to take away some important positives... I am actually placing the trades now before I wasn't I was just sitting there going I think it is going to do this then watching it happen and not doing anything. Now I am actually trading them then closing the trade at the wrong time so we have made a big step forward no I just need to tackle the next problem.
How I am also going to tackle this issue is through better statistics, I have been following an amazing thread on Big Mike's Trading and I will now start reporting all my trades where I got out and what type of entry it was along with many other variables such as how far it moved in my favor for a trade that worked or how far it moved against me for a trade that didn't. This will all be extremely valuable and help me build my confidence.
Looking at the trades I was right on the direction of all of them it wasn't rocket science though very poor trade management. I need to change how I manage these trades now or my results will not change.
Dow Short = 0
Dow Short = -10
Dow Short = 0
Dow Short +1
Total = -9
Tomorrow is Facebook IPO and option expiry so it could be messy it is going to be very interesting to see what happens.
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