Daily Report Card 09182020

#dai­lyre­port­card #day­trad­ing #trad­inglifestyle #day­trader­life #grasshop­per­sanony­mous #trad­ing­forex #trad­ing­com­modi­ties #NEXT

Sum­ma­ry: Learn from mistakes 

Every trad­ing day I recap my trades, includ­ing more than entries and exits. Why did I take the trade? How did I man­age the trade, my emo­tions and cog­ni­tive func­tion? All the good stuff as well as all the ugly of being a day trad­er. As always, feel free to reach out to me. 

My week­ly goal: For­mu­late hypos in order of like­li­hood and track with actu­al devel­op­ment on the day

Good Pre-mar­ket routines

Good Ses­sion PECS

Bad Trade selec­tion

Good Trade siz­ing or SL placement

Good Trade Exe­cu­tion & Mgmt.

Good Risk Adjust­ed Returns

Yes Dai­ly review

Mup­pet meter (1 being best — 5 being worst): 3

Sum­ma­ry

• GBPNZD
  • IB trad­ed high­er off a near ADR exhaus­tion lev­el run­ning into M30 VWAP in DT clos­ing as a big bull engulf with B clos­ing high­er as a pos­si­ble base
  • C: Hypo 1 add: Mean Reversion
    • Pre­ferred: IB exten­sion up, sus­tained auc­tion, Val­ue accep­tance, Hit PPOC as prof­it tar­get (4.5R, but will taper down as time goes along). Actu­al­ly the vari­a­tion on Hypo 1 could be con­sid­ered as hypo 4 for my track­ing sheet. I put in a buy stop order in case of an IB exten­sion up. Price has been slow but steady for now. 
    • If no val­ue accep­tance and price action con­firm­ing a rever­sal can switch to Hypo 2
  • D: Trad­ed clos­ing high­er still but with­in IB although 3 ticks from IB high. 
  • E: Long 1.91530 SL 1.91230 TP 1.92862 
    • Rea­sons: Mean Rever­sion, IB exten­sion up M30 slow and steady incline
    • E closed back with­in IB but not as a rever­sal pattern
  • F: Made a poor high but then con­se­quent­ly made HH 91566
    • Got stopped out after a move back into IB at 1.91230 so down ‑1R
    • F closed as M30 Bear Engulf leav­ing behind a sell­ing tail in F and clos­ing with­in IB form­ing a failed auc­tion so went short in G
  • G: Short 1.91312 SL 1.91617 TP 1.90717
    • Closed as strong inside bar but still with­in IB with no HHs
  • H: H retraced all of G look­ing for a con­tin­u­a­tion if any. Nev­er came in the end. I closed it at 1.91455 for ‑0.5R loss. 

Hypos

• Was I right on the direc­tion of the session?
  • GBPNZD
    • Yes 
• Which hypo played out and how did I hypoth­e­size it play­ing out? How did it actu­al­ly play out? What did the pro­file and price action show?
• GBPNZD
  • Hypo 1 add: Mean Reversion
    • Pre­ferred: IB exten­sion up, sus­tained auc­tion, Val­ue acceptance
    • 50%
      • The mean rever­sion hap­pened right at the open. Even though we extend­ed IB up the auc­tion failed. 
  • Hypo 2 – Return to val­ue (short)
    • D1-C‑S 1.91979 at VAL with LTF supplies
    • Pre­ferred: Fake out extend­ing up, price action con­firm­ing rever­sal, failed auc­tion with quick play through IB range and
    • 90% 
      • This was the actu­al play even though it didn’t work out. The fol­low-through on going through down IB nev­er came.

How accu­rate was my assess­ment of mar­ket con­text? Was I aligned with mar­ket context?

• Time for the bad part. The actu­al play was my sec­ond hypo. The first Hypo I should not have tak­en due to over­head LTF sup­plies and sub­op­ti­mal prof­it tar­get. If I hadn’t done so I could have focussed on the 2nd hypo and closed the day off with a ‑0.5R which is okay.
• Every time I hit a full stop 9 out of 10 times I feel it was a trade I should not have taken. 

How did I feel before, dur­ing, and after the trade?

• I felt okay. Start­ed get­ting slight­ly jumpy when price didn’t go in my favor fast enough since most of the times my trades do. So start­ed lift­ing some weight.

How well did I fol­low my process?

• I did okay. Not on the first one but did well on the sec­ond one even if it was short­ly after I lost the first trade. At the time I felt like I was grasshop­per­ing but I don’t think it was. I under­stood it was the actu­al play I should have been focussing on the whole time so took it.

How well did I man­age my phys­i­cal, emo­tion­al and cog­ni­tive states?

• I did well. Start­ed lift­ing some weights. 

What did I learn today?

• The first trade did not have a good prof­it tar­get plus val­ue accep­tance should be clos­er to val­ue from the get go. Thus it was anoth­er con­fir­ma­tion that I shouldn’t have tak­en the trade.
• I learned that even though I made a mis­take I can stay com­posed and fol­low my rules for enter­ing and exit­ing a trade based on my plan. 

What’s one thing I need to do more often?

• Fail to suc­ceed. Learned a lot today. 

What’s one thing I need to do less often?

• Wor­ry about the out­come of an indi­vid­ual trade

Under the cir­cum­stances, did I per­form at my best?

• I did okay

For my trade plan(s) on this par­tic­u­lar day, go here:

Pre­mar­ket Prep GBPNZD 09182020

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