Well, I scalped from 7am until 1:30pm today. 25 trades. Keep in mind this is on sim, and it's a mental exercise I'm doing. I have no real concern for trades, other than to follow rules and manage them as best I can. The main thing I'm focused on is how I FEEL during trades.
Yesterday, I hesitated on a few setups. Today, I didn't do that, so kudos there.
The problems today? I should not allow trades to go past 10 ticks on me. That went out the window today; I had six trades that had MAE's beyond 10 ticks.
On those trades today that I allowed past 10 ticks, a few things happened that I noticed:
1. I really wanted to "be right" on them. Noted in journal.
2. I would start to look at other timeframes, other information, searching for ANYTHING to give me a reason to "hang on" a little longer.
This is a good thing to notice, because it's something that needs to be fixed.
Other than that, I executed the system well today. Today was certainly not a day that was conducive to that method, but that's beside the point.
Being 100% honest, it is embarrassing to write these things down here. I feel like I should be "better" than this. I feel awkward for putting myself out there as someone who can "help others" with trading, because I now see myself as the one who needs help. I'm not having a pity party here, it's just the truth that it's hard to continue to make my weaknesses public. It's shaming. (Probably a good motivator to continue to improve though right?!)
Here is the 20+ trade sample.
A zero expectancy (gross) for this sample set. 50% winners, 9 tick average win, 9 tick average loss. (negative expectancy after commissions on the 29 trades)
Here's a cumulative look at the past two days trades, which completes this exercise for the 29-trade sample. This chart was made using the output function that the S5 trade analyzer has. I just combined yesterday's and today's outputs.
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Results of the exercise:
- I really did make less mental mistakes than the first exercise, so that is a good thing for sure.
- I can tell that I am becoming much more self-aware. This is a very very good thing. If I get nothing from these exercises other than an increased self-awareness, then they will have been time well spent.
- I still struggle with wanting to be right on trades. Which, in this exercise, led me to hesitate. Yesterday, I hesitated on a few entries, today I hesitated on a few exits. Interesting to me how it was only a one-sided problem each day. I wonder if there is anything behind that dynamic...
Focus for the next exercise:
- Keep improving self-awareness. Right now I am catching myself in the act of committing errors; next, I will catch myself even thinking about them (before I commit the crime).
- Larger sample size. Because scalping can lead to so many trades, I'm going to extend the sample size for Exercise Round 3 to be time based. It will start tomorrow, Friday the 8th, and go through next Friday, the 15th.
- Continue to remove energy from the idea that I need to be right. Continue to add energy to the idea that I don't need to know what's going to happen next in order to make money.
- I will be taking this exercise live soon, no more sim exercise.
Guys, this is so much work. I feel completely uncomfortable. This is probably a good thing, but it is so hard.
The following 8 users say Thank You to indextrader7 for this post:
We are all standing besides you on this wonderful community @Big Mike. If you ever feel you need some data crunched let me know and I will do it for you. I know how huge and insurmountable the multiple tedious tasks of trading feel (and I used to be actually THRILLED while trading a few years ago, LOL).
Starts with review, planning, what-if, keeps you on your toes waiting waiting waiting to no end for low risk setups, then keeping yourself patient and further patient and composed till a proper exit presents itself, then further self-awareness to stop ego from a profitable trade and fear adding from a losing trade and not letting both affect you on the next trade, rinse repeat for hours --- and ends with record-keeping, self-awareness again. Takes the life out of you. Almost makes me feel promoting myself to a swinger from a scalper!
Great job, and all the best on live!
The following 3 users say Thank You to iqgod for this post: