Well, what can I say. Today’s start was a little rough for me. I think I was preoccupied with other things on my mind. I knew I should have taken a little longer before I started trading today. I didn’t get enough rest, didn’t prepare the way I normally do and had some unexpected news. It all made for a difficult start.

I was reminded not to be rushed in my pre-trade routine and separate any problems I might have from my trading. We need to be in “The Zone”, so to speak, and continue what has been customary operating procedure.  I did pull out of the flat period without too much problem, but it took a while. 

The need for proper order placement is so very important. Those of you who subscribe to my method know that it is critical to get this right, especially with the high volatility we are seeing these days. You can be stopped out very fast if you are not careful. I must say that I, too, need to be reminded of my own personal weaknesses so that I do not get cocky, but remain humble. This is something that will be done for me, with or without my permission. I will either be in control and live in a state of humility or I will be humbled by the markets. The thing is, I will get to decide which way I will receive my guaranteed state of mind. Isn’t that special? 

Well, back to the markets.

I will remind you of something I have said before and you will hear me say it again and again. Mental preparation with a solid plan to counter the draw downs that will come are a must. I had to stop and put myself in the so called “Penalty Box”.  This is when I hit two losing trades in a row. I do not want to experience three in a row, so I pause and read a short script to make sure that I am doing the right things and am not getting blinded by some preconceived opinion of direction. This has happened to me before and is one of the things that can “mess you up”, if you don’t stop and analyze yourself and your thinking.

You noticed that I said, thinking. That’s right, your thinking is what will decide your fate. That thinking needs to be clear, not clouded. You would be surprised after the trading day is over and you go back over your trades and look at the area where you struggled. You say to yourself, “What was I thinking?” It is very clear many times, that you can see your mistakes only after the markets are closed and you get a chance to look at it objectively and you get the reaction I mentioned above. This happens to everyone, so don’t feel like you are the only one.

That’s why I have created the “Penalty Box”. That’s for being a bad boy. It just gives you some time to let the move take shape and look at it objectively. Usually about 10 minutes is enough to accomplish this. After that period, you have had some time to pull yourself together and get the next one right and be back on track from there.

Well, I can continue, but I will hold the line here for now. Below is a chart of my equity. These are all the trades I took showing profit and loss. This equity chart is after commissions, in effect, net dollars profit for the day. I was trading between 2 and 5 contracts. 

http://www.screencast.com/t/rFSAhbfVq

Related posts:

1. Friday’s Trading Results
2. Late start today, but the results are the same
3. Tough start, strong finish
4. Great Day Trade Call !
5. Keeping it simple, in a difficult environment

Tags: difficult trading, ending trade