Exercise Your Right to Love Me

Maybe that statement is a little overboard? Perhaps. But if you take my bearish list from Monday 8/21, you can clearly see that so far we are 7 for 7. I wrote this while thinking happy thoughts since being superstitious is a big part of trading. It is bad to talk about trades "mid-swing" or start bragging about profits before you take them. You never know when you will "jinx" what you have accomplished.

Speaking of "jinx," this might be a good moment to discuss my losing streak during June/July. I had a couple things pegged that I thought were the reasons behind it, but it wasn't until Erin (My trading therapist) told me that my normal selections and my state of mind were skewed pretty bad. Since I was sharing my watchlist and trades while still in them, this was altering my focus and my selection criteria. There is a serious level of accountability that comes into play when you are in a position like mine. However, I used to love being in that position. It's one thing to be a successful trader, but it's another to take what you know and watch someone else turn successful right along with you. When you are in a zone, it feels like you are able to see the future. At those times I tend to lose focus on the money being made, and saturate myself in the process. When it becomes mechanical, and you get in that zone, the mechanics that take place amaze me. Watching the precision of the entries and exits, and seeing the set-ups unfold before they even signal. It is a beautiful thing when you are "on."

In the past I have been able to separate what I do in my account vs. what I share in a presentation. In the early stages of my losing streak the lines started to cross. When you can sense emotion starting to creep into the equation...WALK AWAY. Some of the worst decisions take place when you let fear and greed into your head. Instead of following my rules, or taking trades I normally would, my mentality shifted from the weight of what is going on in my account, to the weight of what is going on in everyone else's accounts. This causes you to make different decisions.

Just to clarify, this losing streak wasn't that bad...but earlier this year I was right about 60% of the time on 3:1 or better trades, with a focus of taking small losses. I was on pace to slaughter the returns I made last year. Then into July, I was right about 20% of the time. I gambled with losses a little, my R/R was 3:1 or less it seemed. I took a few losses that were too large, but still managed to keep them small...and here I am coming right out of this slump, with a strong head on my shoulders, and a learning experience I wouldn't trade anything for.

In closing don't look at losses as a bad thing...unless you don't position size properly. A significant losing streak is always out there. Just know when to hold em' and know when to fold em'.

Master Talk is starting in a few hours, gotta run. I need a curriculum. Any ideas?

Pivot Point Analysis and how it can be used with Candlesticks or other Western Technical Analysis would be helpful - I think for a curriculum tonight. Great Blog site and good words of wisdom.



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About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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