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annealden

Anne's Trading Journal Psychology A9.12.19

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Today is the first day I am holding myself accountable publicly for bad behaviors I am trying to resist throughout the day.

1. FOMO

2. Not calculating R:R which leads to gambling and relying on instincts and hope instead of technical levels

3. REVENGE

4. Patience and waiting for clear confirmation for a setup after a bad trade.

5. Checking in with myself psychologically after a bad trade. Do I need to walk away and relax a bit so I can see the charts with fresh eyes

6. ALWAYS  make sure there are multiple indicators for a trade on multiple time frames.

7. Remember I am not Jackie Chan. I tell myself this because he is a master at martial arts. I've been taking kickboxing for 4 months. My technique and strength is much better but I am not a master. Sometimes it feels like I am further along because I am better than I was, however, I am not Jackie Chan. I am still learning and will not be a master for some time.

 

Below is an example of not looking at multiple time frames. The 5 minute is clearly a double top which signifies a reversal. I went long based on the 1 min. I am also learning that trading a low price, mid-cap stock is different than trading a mid-price mid-cap stock. Low price stocks typically don't move very much. It seems HFT and Algorithms manipulate the price action. This week was another learning curve. I was able to repress my desire to revenge trade today and learned that FOMO can be an account killer. I am now not only visualizing the profit I could make but also the loss. This makes me pause and consider the stock on wall time frames.

MNK red long bad trade 9.11.19.PNG

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Honestly, this does not look like a bad trade. 

Of course, I cannot see the entry and stop level. But it looks like you bought at the bounce from the moving average for a move to the high of the day?

How was the risk to reward?

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Hey Anne, a bit of a mind trip, but when I was reading your rule, "Not calculating R:R which leads to gambling and relying on instincts and hope instead of technical levels", I recalled this same exact trade at the same exact time interval. In other words, I also played $MNK on this ORB and it turned into a shark bite, especially since I made it much worse by pressing too hard, failing to overcompensate for the rest of the day. It's just a $3 stock and it looked like the candle didn't even move, and yet my P&L put me way out of bounds for what I let myself lose on a trade. 

Indeed, $3 stocks need REALLY small positions sizes.

Edited by Eric
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