Monday, October 01, 2007

Review of September


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I made just over $1500 for September. I'm not making enough obviously. It's the same old same old reasons which are preventing me from making triple that amount.
I continue to lack the patience to either let my trade properly develop, or hold on longer for larger profits.

On the discipline aspect, I have fortunately gotten into the habit of planning out many of my trades. Now I just need to reinforce that habit by planning out all of my trades. I overtraded I think about three times this month, so that is actually an improvement for me. However, sometimes, I lack the confidence in pulling the trigger. On more than a several occasions last month, I have seen the market tag my support/resistance numbers and bounce from it. I'm not sure why I lack the confidence in pulling the trigger to enter the trade. Could it be the prior mistakes that are feeding my fear of making a trade? Could it be that I am starting to trust less in my ability to perform? I don't know the answer myself.

Obviously the dollar figure of my profits is very inadequate to make ends meet. If I am unable to improve upon these results soon, I may have to put this dream of mine on hold.

The biggest thing for me to work on is to reduce the number of mistakes that I make. Sometimes I just lose focus and don't think often enough about measuring the risk of a trade. Obviously I should be assessing the risk of a trade at all times, but sometimes I just forget to do so, and I wind up entering into a high risk, or a low probability trade.

So, the three process goals for October:
1. Always be mindful of assessing the risk of a given trade. The majority of my overtrading problems could be reduced from constantly assessing risk.

2. I am a scalper by nature. Many of my trades are usually 5min. or less. I may as well start working with that reality. If I work from the assumption that every one of my trades will start off as a scalp (even though it could develop into something more), then that would go a long way in improving my consistency.

3. Document the losing trades. I've noticed a recent tendency to sweep my losing trades under the carpet. But I should be doing just the opposite, and shine a bigger spotlight on them so that I can learn from those losses and use it to improve my trading.


Tyro said...

Hey Phileo,

Yeah, $1,500 isn't enough to live on but you're taking money from a very difficult, competitive market and that isn't easy. You're also improving your discipline and performance which is great.

Hope you're able to make things click this month.

Good luck.

Phileo said...

Hi Tyro,

Thanks for the encouragement.