Daily Report Card 09252020

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

Sum­ma­ry: Be the Scientist

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

Good 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): 1

Sum­ma­ry

• GBPNZD
  • M30 Bull Engulf dur­ing IB
  • C: Closed as inside bar, consolidation
  • D: H1 DBD, M30 break­ing down from con­sol­i­da­tion (not the strongest for­ma­tion) but no IB break yet. M15 messy price action. Plus price is mid H4 swing. Need more con­fir­ma­tion of a pos­si­ble move down. 
    • Con­sid­ered a paper trade but want­ed more confirmation
  • E: E closed down away from the con­sol­i­da­tion, no IB exten­sion yet. Lack­ing clar­i­ty in the nar­ra­tive but a con­tin­u­a­tion to the move seems more appar­ent but a momen­tum move at this point into the ses­sion might be met with resis­tance. Unless of course the H4 demand gets tak­en out which is more like­ly at IB exten­sion down. Although it is just as pos­si­ble we will see a test of IB range low and con­tin­ued respon­sive activity
    • Paper trade on a con­tin­ued move down from D break­ing down from consolidation
      • .Short 1.94023, SL 1.94324 TP 1.93423
  • F: F closed with­in IB after extend­ing 3 TPOs below range, form­ing a H1 con­tin­u­a­tion down (demand not tak­en out yet). Price action still look­ing like a continuation.
    • Close paper trade 0.3R
  • G: H1/H4 demand tak­en out, G closed inside IB leav­ing a long buy­ing tail/wick, but no price action con­firm­ing a reversal
  • H: Closed as a Bull Engulf fin­ish­ing the failed auc­tion and with over­lap noise we could see a quick move up poten­tial­ly. Paper trade: 1.94080 SL 1.93783 TP 1.94673. Cons are the LTF con­ges­tion on the way up. 
  • I: close at ‘max cut off’ would have net­ted 0.2R only.
  • J: Moved through IB and stuck out from the top form­ing a neu­tral day and would have net­ted 1.4R

Hypos

• 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 – Con­tin­u­a­tion down
    • Price action con­firm­ing a con­tin­u­a­tion to the H1 DBD
    • Pre­ferred: Momen­tum IB exten­sion down, sus­tained auction. 
    • 80%
      • There was no Momen­tum trade, instead a con­sol­i­da­tion with a break down and slug­gish move fur­ther down extend­ing down from IB. 

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

• I did well here

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

• I felt good hav­ing the con­fi­dence to not take any risks if I lacked clar­i­ty in a good set­up. Nonethe­less I logged my obser­va­tions and learned a lot. 

How well did I fol­low my process?

• I did well here

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

• I did well here

What did I learn today?

• I learned that my read­ing of price action gives me either clar­i­ty or it does not. The lack of clar­i­ty can be due to sim­ply not under­stand­ing the nar­ra­tive due to lack of expe­ri­ence and knowl­edge or sim­ply because the mar­ket is not con­ducive to any good trades today. What­ev­er the rea­son for the lack of clar­i­ty my default set­ting is: do not trade. Usu­al­ly when I have a good under­stand­ing I have the con­fi­dence to take a trade. Usu­al­ly when my SL is hit it was the wrong trade to be in. If it was sim­ply a move that did not work out I rarely get a full stop hit. Today, I went with align­ing myself with nar­ra­tive which I did well. Took trades based on my assump­tions but due to either not fit­ting my rules or clar­i­ty lev­el I opt­ed for a paper trade to fig­ure out if my assump­tion of nar­ra­tive was correct. 

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

• Be the scientist

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

• I did well today

Under the cir­cum­stances, did I per­form at my best?

• I did well

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

• Twit­ter
• Insta­gram