This is a reblog of a post I made yesterday. In the process of trying to edit it I managed to delete the whole post so here’s take two!
I’ve been hardly trading at all lately. Life has been conspiring to get in the way which is frustrating enough, what is doubly frustrating is that I feel like all I ever do is say that life is getting in the way of trading. On reflection though that’s to be expected and I’m fine with it. It does highlight that this endeavour is must easier to pick up when you have more time on your hands but the whole life getting in the way card isn’t something I can hide behind forever.
To that end I’ve been trying to utilise the time I do have towards trading. Today that meant trading a time that’s usually fairly slow from about 09:30 – 13:30 GMT. This gives me the back end of the overnight US session into the open. Sometimes there are some good moves but I usually miss them. The market was fairly slow as expected, not much in the way of news which wouldn’t be out till later anyway but there was good liquidity I thought.
I tried to figure out if the market was going to advance up or down and after a significant while trying I decided I couldn’t tell so decided to just watch and see what happened. I did in the end identify a price where I wanted to enter a trade but as is typical and consequential of not being consistently at the screen day in day out, hesitated. Just as I placed my order the price moved away and I cancelled my order. Ultimately the market ended up doing what I wanted but I wasn’t along for the ride.
This yielded two important lessons which until recently I’d probably not have observed. Firstly I let the trade go, in a previous life I’d have chased the entry and probably entered at a bad price just as it reversed to have me hanging around in a slow market taking heat, which is something I don’t do well. I’d have probably have scratched out or taken a loss before the market turned and did what I wanted. I’ve learned (or am still learning) to allow these opportunities to pass by, as the chances are they will return later, something that in this case it did. The second thing I learned when watching the video play back was to look at it objectively. On the surface of things I saw that the market did what I want and would of yielded a decent winning trade. In reality I don’t think I would have got that. Price actually went against me initially so there is every chance I would have been taken out before it then made it’s way to where I wanted. I also doubt I’d have taken all the profit off the table as I still find letting the winners run challenging.
So the moral of the day for me today was that I didn’t get a trade, placed one order which I missed but in all likelihood probably wouldn’t have capitalised on if I had gotten it. For me these are valuable lessons because it allows you to look back and analyse how you should have played things to ensure that next time you do capitalise on it, actions that previously I probably wouldn’t have bothered with.
Thanks for reading.