Friday, September 22, 2006

perfect storm

Well, today was quite a disaster. It all started with the smug feeling I had from my trade in IAAC. That gave me a false and delusional sense of confidence that I could be a master of the markets.
The day started pretty slow, and on a bad note, as I woke up late after the trading session had begun. I logged into my account just a few minutes after my position in GIGM get stopped out. What made it annoying was that I watched it go back right up after my stop was hit. So guess what I did? Yup, tried to get on the saddle. That was mistake #1 - chasing. The trade itself was not such a bad trade, but it was my attitude and approach that was bad.

As the morning wore on, I saw no real good setups. I got bored just watching my watchlist. So just to break the monotony, I took a trade in RIM. That was mistake #2 - forcing a trade with no low risk setup. The trade went against me and before I knew it, I was thinking, man this sucks big time, I better try and make up for that mistake. And of course, that kind of attitude inevitably and unavoidably leads mistake #3 - trading without control over your emotions. I also overtraded, deviated from my plan, did not follow my own rules, was impatient and threw any sense of discipline out the wind, and just plain sucked. I'm not sure if there was a rule out there that I did not break.
I went from feeling smug and confident to feeling frustrated, angry, and embarrassed. Embarrassed because I know I can be and do much better than this, but my actions have not demonstrated that today. That is something I will need to work on.
I will also need to think about how to address this boredom issue. When the market is going nowhere, and my watchlist is not turning up anything, and I'm just sitting there and watching and watching for what seems to be a couple eternities, the urge for me to do something starts to build and build. I'll need to think about how I am going to have to deal with this urge for action.

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