Monday, January 4, 2021

Losing day to open the year

At the open there were a few good picks. The longs didn't sustain (NIO, FUTU, MT). My only short pick (BABA) was my best trade of the day.  At that point I was down very small on the day. And then I started hacking around... making matters worse. What I did do well, though, was take my stops consistently.

At 2 different points, I realized the market wasn't behaving "my way" and that I should be calling it quits. 
The feeling that the trades I was taking "should have worked". This is the sensation that my techniques aren't winning in this market climate. I need to know to stop pressing. At least step back (paper trade!) while it plays out.

But I didn't want to close red. So I dug the hole deeper. My brain should have listened to my gut! 
As I go back through to annotate charts, it seems so clear that my methods weren't working today. I need to recognize those days. Just paper trade against fomo. 
Small losses are cost of doing business. Big losses end careers.

LESSON: Trust that feeling that the market isn't doing my thing, and take the rest of the day off! When I'm losing, every trade seems like the one that will save me, but in reality I'm off kilter and better to stop the bleed.

29 total exits. 8 wins and 21 losses (28% winners).


















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