12 Jan How did I trade today? 01122021
Summary: Gotta take the good with the bad
Account (P&L): +0.65R
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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:
- Don’t take trades where SL placement is suboptimal. Instead, reassess for a better entry if possible. Unless there is a planned momentum trade.
Good Pre-market routines
Good Session PECS
Good Trade selection
Fair Trade sizing or SL placement
Fair Trade Execution & Mgmt.
Good Risk Adjusted Returns
Yes Daily review
Muppet meter (1 being best — 5 being worst): 2
- IB: Traded pulling back to VAH
- C: Long 1856.27 SL 1851.23 TP 1866.25 (going against the H1 Three Inside Down)
- Hypo 1: M15 Three Inside Up (not on the hour) at yesterday session high near VAH. Will wait for a transition to possible M30 Bull Engulf
- Closed as Bull Engulf
- D: M15 dragonfly doji at LTF supply and I closed the trade off at 0.65R. Not too happy with that as I should have let the trade transition further in an extension above IB as this was the probable outcome after LTF price action transitioned to a M30 Bull Engulf. Will dissect later.
- Closed extending over IB making HHs
- E: M30 Inside Bar
- Packing up and going to the gym.
Hypos — GOLD
- 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?
- Hypo 1 — Return to Value
- Preferred: Price action reversal near VAH (perhaps even a quick rotation testing VAL and H4 C‑dem). In case of IB extension down I’d prefer a failed auction to neutral day extending higher. If price traverses down during IB I’d prefer an extension up with sustained auction.
- We formed a H1 Three Inside Down pulling back top VAH but due to medium time frame as well as profile sentiment I went against this upon the creation of a M15 Three Inside Up monitoring for a transition to M30 Bull Engulf.
How accurate was my assessment of market context? Was I aligned with market context?
- I did well here. I hypothesized a probable outcome. Waited for price action to hit the area of my level and price action to confirm and went in.
How did I feel before, during, and after the trade?
- I felt good before, during and after even though I messed up SL placement and thus position sizing and thus my profit made. All good though as this was my first trade back into gold. Gold being quite the beast I will be less strict with myself.
How well did I follow my process?
- Trade selection
- My selection was great as it was per hypo 1. I stalked the trade. Visualized what I wanted to see the trade transition into and monitored for it.
- Trade Sizing & SL placement
- Due to obtain an entry from M15 I could have had better SL placement ie. tighter and thus my position and profit could have been better. Instead of adjusting my SL placement I went for the standard SL size as I was at the time a little unsure if I had made the best entry as the M15 Three Inside Up wasn’t the strongest.
- Trade Execution & Mgmt
- The entry was good. The exit was not. I watched the M15 Three Inside Up transition into a M30 Bull Engulf as visualized. I should have given it the room to extend over IB. But when I saw a M15 dragonfly doji albeit surely a possible continuation pattern at LTF supply I felt the urge to cut my position. I am not too happy with this as price went on to extend over IB and at the time of this writing would have hit 1.5R before forming a M5 Bear Engulf, M30 Inside Bar in E. Nevertheless. I don’t often trade Gold and I feel I did well on taking the trade (as per hypo 1 nevertheless) and sticking with it for a while.
How well did I manage my physical, emotional and cognitive states?
- I did well here
What did I learn today?
- When taking a trade based on a hypothesis, stay in tune with real-time price action behaviour. Let the hypothesis roughly guide your sentiment (without marrying it) and use developing price action to read the current page (as you will) as you visualize what the next page might hold. If the development holds into the next page, stay with the trade until proven otherwise (or your profit target gets hit).
What’s one thing I need to do more often?
- Take the trade based on my plan.
What’s one thing I need to do less often?
- Don’t fear losing gains. If the trade is worth taking, it is worth the 1R risk. If it’s worth the 1R risk there is no shame in getting stopped out. Let exit rules guide your decisions.
Under the circumstances, did I perform at my best?
- I did okay
For my trade plan(s) on this particular day, go here: