Wednesday, November 14, 2012

Day's Anatomy- 13th November 2012- Changing Your "Reality".

Today, 5 of the 6 trades taken were good, well thought out trade. 3 losers of varying size and a couple decent winners. The bad one was the third loser/4th trade.

Missed the xxx24 @ the high of day by a hair. That would've got me to my target for the day. Took the next trade long, a loser. No problem. Then, rather than go with the other side of the trade- despite the 1 min wicks against my prior long ZoA i.e S becomes R- I tried to almost bully the market to go my way by moving the trendline (ZoA) slightly lower down to allow me to take the long again..."just in case I was off the first time".

I'd say the market beat me but the truth is (and always will be) that I beat myself.

That was my momentary loss of control/calm today. I attribute it to the near miss and the fear of losing in the direction that was supposed to have brought me to target. Irrational, illogical....and completely human.

Came back with a fresh logical approach and reversed the damage for basically a scratch day.

It's not that there is any one way to read the market, but you certainly can't modify reality of your strategy to try to escape losses, maintain control or whatever it is that motivates you to mess with what works. You have to know that you will take losses (the "good" ones) but, moreover, you have to want to take losses as part of a profitable trading routine.

Avoiding those losses means you are no longer trading your system, which means random trading. Random trading means losses equal to trading costs over the long term.

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