Relative volume didn't help today. Today seemed like "up is down and down is up" kind of day. Fed Chair Powell was speaking into and during the open. That should have been a huge red flag to sit still or at least go extra small. Or HEY! How about take the day off? I thought I could be too smart. Instead I wasted 2 hours and 5% of my account, plus the psychological toxicity. Really, <SELF> take these days off and call it a green day.
If my biggest trading fouls are
- "trading like an ass"
- too big position
- not stopping losses
- not quitting at max loss
- trading too big spreads and/or illiquid option
- overtrading
Today I was guilty of #5 for sure. Also one case of #4. I think these offenses lead to #6, which I think is "damage control" but often just makes it worse. Also, I kept trading despite the sensation of #1 at a certain point.
Reflecting on my p/l in general, I need to come up with a method to trade Thursdays and Fridays. I think trading this week options on R,F is a recipe for disaster...as tempting as it is. The volatility makes it hard for me to do the right thing all the time.
Still need to work on answering the question, "What makes me stop?" Is it maybe 2 loses? Maybe I shouldn't take any new trades after 10am in general, green or red.
Here's what I did do right today: Control position sizes. Stop while red instead of continuing to try to redeem the day.
Something else to keep in mind: Beware the instant loser (red right away, no partial). If I have properly small position, the instant loser won't hurt me financially or psychologically. That should be plenty enough reason to keep positions small, and to trade next week expiration on Thursdays and Fridays.
