Vision For Trading - Work In Progress
|October 18th, 2016, 11:00 PM||#11 (permalink)|
Futures Experience: Intermediate
Platform: ThinkOrSwim, Ninja Trader
Broker/Data: TDA, TOS, NT
Favorite Futures: CL, ES, SI, GC, DX
Posts: 14 since Sep 2016
Thanks: 11 given, 9 received
10/18/2016 A New Perspective
Well, the market traded as I expected for once and GS beat on earnings as I expected, however...
The options didn't trade as I expected. I was expecting to much $ from the trade. After trading the GS calls last week I was expecting to be up to high a dollar amount on open. I was looking for $4, to $5K on open, but it just wasn't there. When GS was up $4.00 I was up a little over 1K on my option position, $4.00 on GS was a little more than a 2% move. I understand now that a 2% move was already priced in when I bought them, even though I thought I got them at a good price, that price included the move today. So what did I do? Nothing. Absolutely nothing. I could have sold them at open and by all rights should have and collected the Profits and just waited to buy them back. I had another opportunity to sell them but declined that offer as well. This is troubling, that I have already passed up 2 opportunities to sell on a highly volatile position, that if it drops by $1.00 will be decimated. What am I waiting for? Why didn't I sell? I believe I was just clearly expecting too much from the trade and wasn't satisfied with what the market offered. Clearly that was all it was worth. Note This is a common problem I have and need to work on it if I continue to trade options. Sell them on open and then buy them back when they retreat.
My Plan for Tomorrow.
Morgan Stanley reports tomorrow pre-market. I am expecting that they will beat on earnings as well citing strong trading revenue. I am looking at this as another opportunity for GS to continue higher to possibly the $175 range, where I plan to unload my Long Option position in increments of 5 contracts w/i 15 mins of open.
The options did increase in value today and with only 3 days left now till expiry I will need to sell.
Futures Trades Today : Still working on calming down and not over trading Futures - This is confidence building 101 Singles
Had one DX Long Trade for $65
Had one DX short Trade for $ 0 Stop at BE after it reversed Could have closed another $70
Had one ES Long Trade for $100 In after hours - Bought 1 at resistance thinking it would break through, it didn't was down $75 and added another contract to get out. Eventually it came back and did break the resistance, If I had held on 2 more mins I could have doubled the win, but I had a terrible entry and was glad to get out with a win.
Sold 500 Shares ATVI for $705 Profit
So, all in all a successful day besides the fact that I sold JNUG twice yesterday for like 10.65 and today it was trading in the $11.15 to $12.30 range. I sold it, because I just didn't feel like it was going to breakout, and didn't want it to turn around on me. I could have bought back in, but didn't want to chase it. I will chalk that one up as the one that got away.
Psychologically, I've been calmer, much calmer, maybe even too calm considering the large short dated option position I'm holding, but hey, it's better than freaking out over every tick.
What has changed Psychologically? That I believe has improved my trading and trade management? Or at least my mental state while trading.
1. Journaling and Logging Trades Religiously. Thanks again to Softsoap for recommending the Traders Journal. It is much more than a spreadsheet.
2. Getting past my ego and sub-conscious. How am I doing this? What method am I using? Well, I started praying and asking God for help and telling him my mistakes and shortfalls. Since I've started doing that, I've found this site. I've closed out trades that I don't even know why I entered. I don't believe that God can effect the market, but I do believe that through the act of praying or meditating I can achieve a regression of the ego and possibly re-train my subconscious similar to other methods listed in the psychology thread. I'll be honest, I'm not particularly religious and I am not a bible thumper, far from it. I was in the Navy and still talk like a sailor, but to appease the wife and kids, who wanted to go to church but didn't want to go without me, I started going during a recent period of severe drawdown in my account. This was one of those times where when the market closes you just feel like you've completed 15 rounds and lost the fight. When the bell rings, you just laydown with a headache and question everything you're doing type of periods.
3. All in all I feel like I'm making progress, and now that I'm logging every trade, it's not just a feeling, I can look at my log and see that I am making progress. My equity curve is going up, and I have exited positions that were purely speculative with no basis in reason.