Daily Report Card 09242020

24 Sep Daily Report Card 09242020

#dai­lyre­port­card #day­trad­ing #trad­inglifestyle #day­trader­life #grasshop­per­sanony­mous #trad­ing­forex #trad­ing­com­modi­ties #NEXT

Sum­ma­ry: Untan­gling that Spaghetti

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: For­mu­late hypos in order of like­li­hood and track with actu­al devel­op­ment on the day

Good Pre-mar­ket routines

Good Ses­sion PECS

Good Trade selec­tion

Good Trade siz­ing or SL placement

Good Trade Exe­cu­tion & Mgmt.

Good Risk Adjust­ed Returns

Yes Dai­ly review

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

Sum­ma­ry

• GBPNZD
  • C: IB exten­sion up after quite slow PA inside IB, closed above near its high
  • D: Decid­ed against a momen­tum trade due to the imbal­ance at open but it seems the auc­tion might be sus­tained since it took out H4 supply. 
  • E: 2 TPO Sin­gle Prints in C, look­ing for a sell­ing tail and a pos­si­ble close with­in IB for a failed auc­tion. But noth­ing of that yet, instead a sus­tained auc­tion with a very small sell­ing tail in E.
  • F: Closed mak­ing HHs
  • G: Closed with a long sell­ing wick but still up mak­ing HHs exhaust­ing ADR. 
  • H: closed with­in G’s body

Hypos

• Which hypo played out and how did I hypoth­e­size it play­ing out? How did it actu­al­ly play out? What did the pro­file and price action show?
• GBPNZD
  • Hypo 1
    • Hypo 1 – con­tin­u­a­tion long
      • Momen­tum trade long extend­ing IB range dur­ing 1st two hours, sus­tained auc­tion tak­ing out H4 supply 
    • 100%
      •   The play hap­pened exact­ly like hypothesized

How accu­rate was my assess­ment of mar­ket con­text? Was I aligned with mar­ket context?

• Yes, I was. Even though I had ini­tial­ly put in a buy order as per hypo 1 I start­ed doubt­ing the play due to a pos­si­ble mean rever­sion play. Plus the round num­ber 1.95 I thought we could see a pop of the num­ber before a rever­sal. I guess since we had already tak­en out D1 sup­ply there was more momen­tum to the upside left. 
  • This was con­tra­dict­ing the move from yesterday(LN and NY being up)  and today’s AS but I guess this is more indica­tive for high momen­tum on the move as was out­lined in my trad­ing plan: “Due to not ful­fill­ing mean rever­sion fac­tors at the open, might be indica­tive of high­er momen­tum and could be look­ing at a con­tin­u­a­tion” add to that the D1 sup­ply get­ting tak­en out. 
• When I saw that the auc­tion was sus­tained I did not want to jump in out of FOMO or bet­ter yet I did not see a good entry for myself to still get involved with a late sus­tained auc­tion. In the end the buy order would have net­ted 2.5R. #NEXT

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

• I felt good. Even though I quick­ly real­ized that hypo 1 was the actu­al play I com­mit­ted to my deci­sion of ‘walk­ing through’ anoth­er sce­nario that I felt I need­ed to learn more about. 

How well did I fol­low my process?

• I did well here

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

• I did well here

What did I learn today?

• I learned that due to a D1 phase 2 tak­ing out pre­vi­ous sup­ply, even though a sus­tained trend pre­vi­ous day, we could see a con­tin­u­a­tion due to high­er momen­tum fur­ther enhanced by the place­ment of the open, price action con­fir­ma­tion and momen­tum IB exten­sion. That’s a long ass sentence 🙂

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

• Stay the course. Observe and learn. 

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

• Not being in a trade is okay. Focus on under­stand­ing the con­di­tions first, exe­cu­tion comes lat­er. If I under­stand the con­di­tions I am more like­ly to execute. 

Under the cir­cum­stances, did I per­form at my best?

• I did well here. Fun­ny how some of my best days are the days I have NOT tak­en a trade. 

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

Pre­mar­ket Prep GBPNZD 09242020

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