Daily Report Card 07232020

23 Jul Daily Report Card 07232020

#dai­lyre­port­card #trad­ing­forex #forex #FX #BLACKGOLD #CRUDE #CRUDEOIL #GBPNZD #XAUUSD #GOLD #day­trad­ing #trad­inglifestyle #day­trader­life #grasshop­per­sanony­mous #NEXT

Sum­ma­ry: Keep com­ing back

Every trad­ing day I recap my trades, includ­ing more than entries and exits. Why did I take the trade? How did I man­age the trade, my emo­tions and cog­ni­tive func­tion? All the good stuff as well as all the ugly of being a day trad­er. As always, feel free to reach out to me. 

My week­ly goal

Have cor­rect SL place­ment and thus posi­tion sized accordingly.

Good Pre-mar­ket routines

Good Ses­sion PECS

Fair Trade selec­tion

Fair Trade siz­ing or SL placement

Good Trade Exe­cu­tion & Mgmt.

Good Risk Adjust­ed Returns

Yes Dai­ly review

Mup­pet meter (1 being best — 5 being worst): 2

Sum­ma­ry: Keep com­ing back

• WTI
  • LN open above val­ue, price already at 66 ticks height which is close to 1x ASR from VAH, under­ly­ing new­ly formed M30 demand, pre­mar­ket move away from H4 demand cur­rent­ly trad­ing with­in H4 supply
  • Took out M30 sup­ply but still one left right at ADR 0.5
  • With over­head ADR 0.5 and sup­ply we might see a M30 bear­ish con­fir­ma­tion, if so I have my sell lim­it order ready to go, 
  • D closed with­out mak­ing a HH but also no bear­ish engulf either, instead consolidation
  • Due to tak­ing out of larg­er time frame sup­ply ZOIs before
  • Did a long: Entry half 42.195 (on com­ple­tion of pre­vi­ous M30 bar) SL 41.948 Buy lim­it order at 42.056 in case of a pullback.
    • Order got hit
  • Got stopped out hard at 41.948

After­math

• WTI
  • Price con­tin­ued low­er in the end clos­ing M30 below M30 QHi so there is pos­si­bil­i­ty for more down­side. Although under­ly­ing demand is not bro­ken yet so might not hap­pen dur­ing LN.
• Trade 2
  • (weak) M30 Bull Engulf at H4-C‑D 41.724 and went long for an oppor­tunis­tic trade long think­ing a pos­si­ble pull­back even though MP showed 4 TPO struc­ture there was no buy­ing tail well 1 TPO is hard­ly a tail… 
  • Got stopped out 41.486 and under­ly­ing demand got tak­en out so we might still see more down­side and this was just a M30 DBD.

Week­ly Goal Achieve­ment: Have cor­rect SL place­ment and sizing

• The man­u­al trade I put on (first half) I had it slight­ly over half a posi­tion size based on my SL, so I had to size down on my buy lim­it order to com­pen­sate. Since this is my 2nd effort on a vegas style trade I give myself some slack but need to tight­en this up. As Dee point­ed out I usu­al­ly don’t go into much draw­down on my win­ners so the fact that I am going into a draw­down should be a warn­ing sign that I might be wrong on the trad­ing idea and act accordingly.

How accu­rate was my assess­ment of mar­ket context?

• My ini­tial idea was a short off ADR 0.5 after a price action con­fir­ma­tion. In hind­sight I am strug­gling to find a valid entry short (read there was none under cur­rent entry rules) based on M30 since the bear­ish con­fir­ma­tion didn’t come until the 3rd bar extend­ed too far away from opti­mal entry. On my old approach I would have gone in on an entry on a low­er time frame but this more often than not got me into trou­ble so the best course of action was to not take a trade short at all. Don’t need to catch all of them. 
• I went long instead because of the M30 RBR fol­lowed by a con­sol­i­da­tion and bull engulf com­bined with larg­er time frame bull­ish sen­ti­ment. Sup­plies tak­en out etc. My ini­tial idea was to wait for a pull­back to con­ter­mi­nous before going long but then thought what if there is momen­tum behind the move. So decid­ed to go with a vegas style trade. Enter­ing on close of the bull engulf and then in case of a pull­back aver­age out my entry with anoth­er half posi­tion get­ting a bet­ter price. At least got to prac­tice this. 

How did I feel before, dur­ing, and after the trade?

• I felt good before tak­ing the trade since I had seen a con­sol­i­da­tion and strong fin­ish­er at the top of a swing before and want­ed to go in but couldn’t based on entry rules. This time I was eager to try it out. Didn’t work out. #NEXT

How well did I fol­low my process?

• I did fair­ly well here

How well did I man­age my phys­i­cal, emo­tion­al and cog­ni­tive states?

• I did well here although after tak­ing the loss I went for a quick walk to reassess my men­tal state. I felt fine so went back to my desk. 

What did I learn today?

• I learned that trades don’t always work out. As if I didn’t already know that 🙂 #NEXT 

What’s one thing I need to do more often?

• Come back and gain expe­ri­ence. I’m in it for the long haul. 

What’s one thing I need to do less often?

• Take any one trade as the end all be all. Not that I did. Just reaf­firm­ing for myself. It’s okay to make mis­takes as long as you review and learn from them. 

Under the cir­cum­stances, did I per­form at my best?

• I think I did. 

For my trade plan(s) on this par­tic­u­lar day, go here:

Pre­mar­ket Prep WTI 07232020