I was trading TYC after the huge volume spike and strong price action. @tarhini_smb chirped TYC after spotting in from The SMB Radar. 44.50 became my most important point of inflection. I started a core and traded around this. Well I tried to trade around my core. I tried taking off risk at prices where my risk/reward lessened. Well I tried to take off risk but couldn’t. Why? HFT programs cutting my bids and offers faster than I could rebid and reoffer.
I would go to add at good prices and couldn’t get TYC. I would go to sell some and take off risk and couldn’t get good sales. Cutting, cutting, cutting all around. Argggh.. I started to get frustrated. Then I got frustrated. Then I got pissed. I just couldn’t trade around my core and take more out of the stock like I had expected.
This is the point in trader psychology where most tell you to go take a walk. As a former college athlete and veteran trader, I have a great deal of experience being pissed off at myself or competitors. An alternative school of psychology Dr. Menaker and Dennis Shull teach us is to use our emotions as information. This does not mean skip working on spending as much time as possible in a calm state. It means for most of us not Ray Dalio we must recognize that it is almost impossible for us to remain calm at all times if engaged in a competitive activity.
So what do we do about this? We must learn to use our emotions as information. Trading TYC I used my emotions as data bits to manage my trades. My anger told me I couldn’t trade around my core. I could be pissed all I wanted I couldn’t get good enough fills to trade around my core. So I needed to either get out of the stock and move on, or consider how to swing trade TYC intraday. I decided on the later.
My inner anger spoke to me: “Bella enough with the in and out around the core. That aint working in this stock today. Find a swing trade where you can control your risk and offers substantial reward or move on.” Using my inner anger helped me to make a good risk/reward trading decision.
Bella
One Good Trade
One Comment on “Using my inner anger (TYC)”
My initial reaction was to fade the hype in this stock, but I have learned that fighting the trend is a quick way to end your career. Due to my directional-bias in the stock, I did not find a good R/R during the uptrend, and my focus was on other stocks during the brief moments I would have had to react to the sharp decline in the stock. It’s a learning opportunity to see how two different traders looked at the same stock and became angry while trying to trade opposite directions.