Tuesday, November 30, 2010

Things that screw your trading day :-)

There are some things that happen in our daily lives that really get on our nerves!

In our business, if you are not calm enough, no doubt your trading will be poor, your state of mind is really important at the beginning of a trading day, you have to fill your mind with good, positive thoughts, so that your action will lead you way up.

You have to  make sure there isn't anything at all bothering you, your mind has to be crystal clear so that you'll be able to use it to its fullest potential because in the trading game if you don't focus on your trades 100% you will lose.

It's paramount that you have a positive attitude and you do want to win, so that you'll be ready to follow your plan and will take only those setups that you know that have good probabilities to work.

So, make sure you are ready to face another trading day,  but beware of the: Things that might screw your trading day:

1 - You woke up really early to see if there is anything going on in the markets, so you start looking at your charts and when you look at the clock you see that more than an hour has passed and you just remembered that last night you promised your wife/husband that you would take some time off so that you could have breakfast together, but what happens is that exactly now a "superb setup" appears and you don't want to miss that opportunity... so you'll be late for breakfast, your day is screwed...

2 - You went to a party last night and you met a friend you hadn't seen for years, it was such a good time and you ended up drinking much more than you had planned to...

3 - Bad hair day...

4 - You left an order to buy working o/n and when you wake up in the morning, after having a terrible night with a recurring nightmare that you were losing a lot money in that position, you realize that actually market went up more than 10 points but your order didn't get filled by 1 tick...

5 - You thought market had fallen enough for the day and you decide to buy a double sized position, when suddenly you realize market is actually plunging 80 points in a couple of minutes! Oh no! Flash crash again!!?? When you look at the DOM you see your position has been liquidated by your broker and you blew up the account...

6 - You think the trading system you have been using for 2 weeks only does not work, but when you ask others that are using the very same system you realize everyone else is making money with it...

7 - You insert an order to go long, market is dead slow and you think your order will never get filled, you wait and wait... up to a certain moment when you have to step out for some reason. You're pissed off and decide to cancel that order... only for when you come back after one hour you see that market went one tick below your price and exploded up...

8 - You just woke up to cover the order you left working from last night and when you turn your computer on you realize there's some kind of issue with your internet connection... you remember your broker is sleeping at this time so you decide to call the night help desk, after they ask you those 10 questions about: who you are, account number, why did you marry your wife... they finally tell you: "OK, what can I do for you?" Too late, your position is in the red...

9 - You are ready to buy at that price you've been waiting for a long time when you decide to have a look at the Twitter stream just to make sure that the guy who makes the best calls is also on the same side of the market but you see he's actually short and says he expects price to plunge another 10 handles, so, as you get in doubt, you cancel your buy order, and of course, market quickly goes up 5 handles, but not before testing your price with precision...

10 - The above things only happen to traders, of course. This one I'll leave for you to add in the comments area below  :-)


Trading is fun! Have a great week.

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