Thursday, May 28, 2009

Update for past 3 weeks

  • The market in general has been going sideways for about a month. Volatility has been decent, but price was mostly confined within a range. That being said, my strategy has been to use scalp and take profits when i see them. I'm not sure if it's the new platform, or is it the pressure of actually pursuing trading in a more full time basis, but I haven't found myself performing to the best of my abilities. The worst emotional weakness I've been having is:
  • Being timid with entries: I have been too strict about my entries and therefore missed alot of great moves. I'm still strugging with rationalizing too much regarding a potential trade, although it's getting better as I'm getting more emotionally stable. What's causing the rationalizations?
  • I'm afraid of losing even the smallest losses, therefore I tend to back away from potentially rewarding trades. I also was timid about using bigger size. There was alot of unsure moments. I think the reason for all of this is from the pressure to perform. Since i'm committing more time into trading, I'd expect myself more. And the more I expect from myself, the more careful I become about controlling losses. If my focus is always on "not losing", then my mindset is completely wrong.
  • My focus needs to be on the market. I need to separate myself/my thinking from what the market is telling me and acting only base on message of the market. I need to be focusing on the setups, the price action. I shouldn't let what I feel at the moment to interfere with what the market is telling me to do.
  • There are only two things you can control: your emotions and your trading size. And to control my emotions for now means to let go of myself completely. To let go of the pressure. I need to drill into myself that "being scared of the pressure = underperformance." I find myself performing the best when my mind is focused intensely on market action, and nothing else. Trading size depends on your emotions. If your emotions are on the right track, you feel more confident, and trading size will increase as a result.

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