07 Jan How did I trade today? 01072021
Summary: Short-sellers covering positions
Account (P&L): FLAT
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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:
- Don’t take trades where SL placement is suboptimal. Instead, reassess for a better entry if possible. Unless there is a planned momentum trade.
Fair Pre-market routines
Good Session PECS
Fair 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: IB traveled 70 pips. Could just mean momentum behind the move as price action looks bullish.
- C: Extended over IB closing above running into LTF supply, M15 Inside bar / M5 bear engulf with a consolidation
- D: Made HHs. Was thinking on a possible late sustained auction entry but with the wide IB I find it a bit risky. Especially when considering the SL placement would be bad (although allowed due to the nature of the trade).
- I should have put more emphasis on price trading within H4/D1 QLo as well as the value acceptance after a H4 consolidation being an indicator of a direction change
- Closed making HHs
- E: A trade in the opposite direction would be risky. If there was a TPO structure buildup with a good selling tail and price action confirming a reversal I might have an opportunity. Although it would be against the current momentum move. As for now we are having a medium initiative activity day.
- Closed as inside bar with longer selling wick but no TPO structure buildup yet. M15 Bear Engulf though. And unconfirmed selling tail in E.
- F: Closed as consolidation. H1 doji potential Evening star (or base) if confirmed an hour from now.
- G: Currently forming the 4th TPO building structure. I am itching to go short but I feel it is more out of annoyance to have missed the initial move then anything else. Yes we do have a selling tail. Yes we do have a 4 TPO structure buildup . Yes we do have a M15 Bear Engulf but with the Momentum since open I feel less confident as there is no clear reversal pattern on M30 yet. Another thing I noticed is the P shaped profile that is being built indicating short sellers covering at the end of a down trend. As such I think there might be less chance of a failed auction and consequent follow-through back to IB edge low. So will stay out and observe.
- Closed trading higher but no HH made. Potential for more upside here.
- H: Took out LTF supply making HHs nearing ADR exhaustion
Summary
- GOLD
- IB: M30 DBD
- C: Retracement. Possible consolidation.
- D: Extending down forming a bear engulf.
- E: Closed making LLs extending profile by 1xIB
- F: Closed as Doji, possible Morning Star after reacting ogg LTF demand
- G: Big move back into IB almost retracing all the way back to IB edge high
Hypos — GBPNZD
- 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?
- Hypo 1 — Value Acceptance
- Preferred: Early acceptance, quick rotation, IB extension up with sustained auction
- 100%
- Even though this played out. I should have hypothesized this under the narrative of a swing reversal by giving more weight to the trade location. Then using profile and value sentiment as a confirmation of direction.
Hypos — GOLD
- 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?
- Hypo 2 — Trend Continuation
- Preferred: Strong Bearish pa, IB extension down with sustained auction.
- 90%
- DBD extending from price action premarket. Followed by what could have been a consolidation but then there was another drop in the form of a Bear Engulf.
How accurate was my assessment of market context? Was I aligned with market context?
- I should have done better in my premarket prep. The consolidation after the medium time frame down trend I could have weighted more as a Phase 1 and possible transition to Phase 2. Hindsight is 20/20 as they say. Luckily I have it all on tape and I can rewatch the whole thing back. I’ll get my popcorn ready for the weekend 🙂
- I did well during the session though being in line with the market. Due to missing the initial move (based on missing the possibility in my prep) I felt less confident and opted to stay out and observe.
How did I feel before, during, and after the trade?
- Felt less confident but still objective throughout the session in terms of understanding order flow and price action.
How well did I follow my process?
- Trade selection
- Missed the move. Shorts covering from the open pushing price higher.
- Trade Sizing & SL placement
- An entry on IB extension up wouldn’t have resulted in an optimal profit target and horrible SL placement (which would have been okay due to the nature of the entry)
- Trade Execution & Mgmt
- If I had taken the trade I would have done well to observe order flow reading and price action to stay with the trade as my reluctance to go against the trade (ie. looking for a short term reversal) has proven.
How well did I manage my physical, emotional and cognitive states?
- I felt a bit jumpy but to be honest I feel that is also because it has been much colder today than in recent days. I live in a country where heaters aren’t a thing as much as it is a tropical country. Feet are cold and am shivering a bit 🙂 Poor me…. Guess I’ll head up and get my heater from the attic. Should have done so earlier.
What did I learn today?
- Don’t act on FOMO just because you missed a trade. Missed the best opportunity. Just work out if there is another opportunity by staying objective. If I missed the trade I default into figuring out the details I missed and log them so I increase the possibility of catching it next time while staying objective to see if there is a new opportunity on the horizon.
What’s one thing I need to do more often?
- Be forgiving when I missed something. Definitely not try to take it out on the market as the market never cares.
What’s one thing I need to do less often?
- I think I might have rushed my prep a bit. So I will try and catch myself next time by taking a minute or two to go over my prep before finalizing.
Under the circumstances, did I perform at my best?
- I did well
For my trade plan(s) on this particular day, go here:
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