Thursday, September 06, 2007

Trading Results for Thursday

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Today, I performed poorly. I probably overtraded a bit, but I don't think it was as bad as it could have been. The afternoon session was just plain messy. Neither breakouts nor broken trends had any follow through, so it was practically range bound for the whole afternoon. You can draw a zone around 1479-1480.5 and see that this zone was touched periodically for the whole afternoon session. The other problem was that ES did actually have a sustained move above 1481 for over 25 minutes before reversing. That was a nasty head fake.
And yet, I tried to trade it, which meant I forced the situation. I think I started to lose focus when I made those bad trades in the afternoon.
I was patient until I started losing money trying to trade the afternoon mess, it was better just to walk away with what little gains I had at that point. That is something that I will have to work on, accepting little to no gains, or even small losses for the day.

The other mistake was that I tried to short near a support level. I'm not sure why I did that again. Going long on a sustained move above a resistance level was part of my plan, but shorting a move to support level that was not sustained was not part of the plan. That was just plain stupidity and lack of awareness of support zones that I had previously drawn out.

The other thing that I noticed about myself is that my risk tolerance changes depending on whether I am ahead or behind for the day. When I am in the red, then I do not hesitate to take on too much risk. However, when I am ahead in the green, then I hesitate to even take on even a little risk. This one I will have to ponder for the weekend on how to address.

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