It wasnít such a good session last night. The days range was wide and a little messy when I started but, worse than that, I didnít have my trading brain in gear.
I started OK watching and waiting but by the time a signal finally appeared I was stuffing around with email and checking my library stuff on the Internet so I missed it completely. Iím not sure I would have taken the signal as it wasnít the very best but I Obviously wasnít functioning too well.
As a rule I generally donít have anything other than my charts and dealing page and some music open when I trade. I donít want to be distracted.
No trades and no real damage done I guess but I must stick to my rules because I have found before that allowing distractions can be bad for me in a financial sense.
With Monday being a Holiday in the UK and therefore no trading for me I was hoping that I could get of the month with a nice trade or two.
Unfortunately that wasnít the case. The range for the day had been quite wide which placed me inside the daily range for most of the session. Couple this with a late start and a few other interruptions and I didnít get a trade on.
Iím happy to wait though because I believe that in trading, as in life, less is more.
Well, that was a slightly harder session for me. Here was some trend activity but also some horizontal support and resistance there from the a wide (ish) daily range. I tried one counter trend trade and took a 0.5R loss and then it really got cracking to the upside but didnít give me the sort of retracements I normally look for to get on board a trend. Eventually I was pushing up against some serial news items so I called it a day.
Over all I felt pretty good but just didnít get to take home the moolah.
I am getting much more rule driven on my stops. I am trying to manage them consistently on each trade like this.
I have a grid that defines 4 stop levels and at the start of each week I define my position size for each level. So right now itís
It seems that trading is a bit like having a few types of Groundhog Day. There seems to be the nice trending day, the nice ranging day and the choppy day where you briefly trend from one range to another then back again.
If you knew ahead of time which type of session you were in for you could save a lot of time and energy. Anyhow, today was much like yesterday in my view with the exception that I didnít get dragged into a losing countertrend trade but there was an Ďalmost set upí at the end which broke out the wrong side just ahead of the news.
One thing I am keeping my eye out for now is that when you get a fake out with an engulfing reversal you do seem to be in for a trip to the other side of the range, especially when it occurs in the Euro open to London open window. I have been seeing these for a while so I think I will keep them in mind for another type of range trade.
That seemed to be a very slow week. Only three trading days available and then only one trade (which was a loser but thatís not the issue). I am thinking that while some weeks are just like that I also was a nit late onto the screens some times and I missed available opportunities. This is in part due to my current renovation project that is chewing up a lot of energy and also chewing into my trade times as I just try to get Ďone moreí bit done.
Balance is the key and I guess that comes from working out appropriate time management strategies and sticking to them.
Anyhow, the summary is 1 trade for 1 0.5R loss. Not much change in position size.
Once again I wasnít really on song today. I let signals go by that worked then finally became a little impatient and finally went for a divergence trade against the trend, which failed. I then ignored the next divergence entry a few minutes later that would have succeeded.
All in all not very auspicious but I have days like that sometimes. I should remember that divergences seem to work better in consolidation, or, with the larger trend.
I did manage my stops properly though so restricted the loss to 0.6R