I want to blame FOMC. I really do. But that won't do me any good. So I'm just going to curse it and turn in.Generally too slow a market for me. Took 187 in the 1st trade, and returned double of that to the market in the 2nd trade. Then made a little back on my 3rd entry. I had good reasons for all entries (I made sure I had more than 2). The problem was with stops AGAIN. I tightened my stop for the 2nd entry (inside bar or no inside bar, in future, I will keep to my usual stops), and because of that, I started paying attention to my stops instead of using my brain to THINK. I need room to strategize. I would rather scratch my trades while having a safety net to prevent from losing what I want to lose in a day. I had many chances to scratch, but I kept staring at my stop. Stupid.
3rd trade (Long, again) was today's best actually. I scaled down to 2 contracts and put in a 3 point target. D suggested I get out and go for a break. I did, but only after making him stay to look at price soaring in my direction. I'm evil. He feels really bad now coz price went up by more than 3 points. I told him that it wasn't his fault (i'm also a good liar), and that had I been sure (ok, i really wasn't, coz the market's not moving. A stalling market kills me), I would have had turned a deaf ear on him.
D made decent profit on TF (after he told me to get out, and after I said it's ok, nothing will happen before 2pm - and he was kind enough to tell me he shouldn't have doubted me), and thanked me for my commentary throughout the session (I tape my trading sessions).
So now we're both happy that I lost only USD 167, and D made 2 points on a FED day.
I'm not changing my strategy anymore. No more tight stops.
Details of trades (all LONG) are all on chart above.
7 comments:
Hi Jules,
I like the way you're posting your charts with notes on them, I'm sure it'll be a big help for you too later on.
Jules,
The market is slow. It's hard to make money in the market when extreme emotions are on vacation.
Also as you noted tight stops don't reduce risk -they increase the risk you will be stopped out. Smart stops are there for a safety net but keep you in the trade long enough to read the market.
LT
Fed days can suck. I had my biggest loss ever on the last FOMC day. Not fun.
Michael,
yes, chart's there for my own review. Sometimes I don't use charts, and I often compare how I do when I have a chart with times that I don't.
LT,
Couldn't have agreed with you more. I spent the entire night figuring out different stops, and totally lost focus. I just do better when I sent out a simple 12 tick stop for all orders, and then concentrate on when to get out (ie. on my terms rather than getting stopped out).
I've received mails telling me I have a really bad risk-to-reward ratio. And I absolutely agree. I scalp - so the ratio means nothing to me. If I really get stopped out for 12 ticks, then I must be half asleep while trading, or my brain isn't working. Then I deserve to be stopped out.
Ryan,
Yes, Fed is a plague. I hate it more than I hate roaches!
I never have good trading days on FOMC day. Good day to take off or trade sim for me
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