I received an interesting trade review from a new trader:
a.m. trading I was very hesitant. my main ideas played out and I missed them IBM and MOS
very frustrating for the rest of the day. when I was on the right side I sold too early. ended the morning slightly positive. told myself I prob shouldnt trade the rest of the day due to frustration.obama talking had the market and gold in play in afternoon. ended up trading them a bit. was on the right side every time but was too tight. more frustration and ended up going over my ticket and stock limit that we agreed on.ended the day -61.00 grossGLD -83MOS -56SPY +24.50HOG +51really unhappy with my results today. could have actually been a huge day if I took my trades on the open. drives / opening plays are my strong suit. I hate that I missed that and even worse I took bullshit trades later in the day. I want to stick to the best plays and set ups like we’ve spoken about time and time again.
This is a day it is very difficult to accept underperforming. You can see the frustration in some of his email. What I find interesting here is the lack of knowledge from where the money will come from at the end of the month. HOG didn’t follow through so there is nothing to be frustrated about there. Ask him about the MOS trade that he missed and he talks 68 but deminimizes above 68.88. There is a claim that he screwed up the GLD trade. He cites frustration that he blew IBM. When you hammer down the day he really isn’t that far off. There are just a few tweaks and some knowledge gaps that will improve his performance.
1) GLD below 155.75 is a pattern we see everyday and one that can make your week/month. This is not a momentum trade it is a Trade2Hold. A change of approach to this set up and he will improve his results dramatically. Place the trade, set your stop, put your hands over your head where you can do no damage and let the trade breathe.
2) IBM will get easier to trade with more screen time. The pullbacks were too shallow for this young trader. Soon after seeing end of the day chart patterns like IBM those shallow patterns will be opportunity for a Trade2Hold.
3) MOS is the same pattern as GLD. Trade2Hold above 68.88. Place the trade, place your stop, hands over your head so you can do no damage and let it run. If you view this as a momentum trade then this becomes a tougher play. Seen as a Trade2Hold and now there are less decisions, clearer thinking, and a higher probability of holding.
Overall I am exceeding less concerned with the future of this new trader than the new trader. He is closer than the frustration in his email intimates to becoming One Good Trader.
Bella
3 Comments on “Closer Than You Think to Being One Good Trader”
Should seem obvious, but to a new trader, AVOID THE MID DAY!!! As Gartman emphasizes: Do more of whats working and less of whats not. Chop Tracker says: MIDDAY NO GOOD. Do less during that time.
Bella, thkxs for the time spent with these posts. I find them invaluable. Forgive my ignorance, but what is the difference between a “trade2hold” and a momentum trade? Is it the timeframe? thkxs.
momentum trade is a move to move trade that you hold for a very short trading period of time. trade2hold is a swing intraday trade that hold until you are stopped out or there is a reason2sell.