A trader wrote to me and asked…….
In the months of May, June, & July I truly found some traction with my intra-day setups, and my consistency, win-rates, execution, and sizing were all improving. Most days, I would average-out anywhere from $1k-$2k+ of profits, typically within the first hour of the session using a trade I have tagged the Open Level setup, as well as a few others. I trade options directionally, and most mornings the winning trades returned 20-50%, and losing trades were limited to 10-15%.
Things were going great, my sizing was safely increasing, and my confidence was great. I was thinking “Wow! I’m slowly progressing to the point where my intra-day trades could begin generating $10k+ per week! That’s $500k+ per year from just those setups!” You know, the conversations most young/naive traders likely have in their heads.
And then August hit. Long-story short, I have struggled in the months of late-July/August with my intra-day trading. The entries that were MONEY just weeks ago, would fade-out and turn against me quickly. The great Open Level setups that provided full ATR moves, were barely making 1/2 of their ATR for the day. And along with that, my daily/weekly profit has significantly decreased.
I know we as traders cannot control the environment, and they plain & simple it is our job to execute on our playbook trades. And I have been! I haven’t been taking big losses, but my playbook trades that were working so well weeks ago, simply aren’t right now.
What advice do you give to the traders on your desk when they experience this same kind of thing during summer/difficult environments? I have began to take profits at 1/2 ATR and that has worked well, but I would love your thoughts on this matter.
To be honest with you Mr. Bellafiore, though I understand I can’t control the environment, not performing as well as I feel I should be the past 4-6 weeks is driving me fucking insane. I am not letting my emotions take over during trading, but I am often waking up at random hours of the night/morning with a sense of disgust and frustration. My thoughts a few months ago were “wow, i’m on the path to becoming a $500k+ trader from home at 25!” to “Jesus, nothing is working..”…
Thank you for any of your time in advance, and I cannot thank you enough for all you/your team to do for this community!
@MikeBellafiore
I appreciate you sharing your trading journey. I have made bold the points which I will focus on in my response.
1. I would average-out anywhere from $1k-$2k+ of profits, typically within the first hour of the session using a trade I have tagged the Open Level setup.
I love how you know how you are making money and are tagging and measuring this. What a terrific best practice for others to follow.
2. I have began to take profits at 1/2 ATR and that has worked well, but I would love your thoughts on this matter.
Haven’t you answered your own question here?
3. Not performing as well as I feel I should be the past 4-6 weeks is driving me fucking insane.
I have been working with a time management coach, the past 3 months and will share a tip she shared with me. Give yourself one hour max to brood over underperformance and then move on. One. Hour. Max.
4. “wow, i’m on the path to becoming a $500k+ trader from home at 25!”
You got ahead of yourself here. Put up $1500 in a month, then 4k, then 10k, 20k, then 30k, then 40, then 50k. Create realistic jumps for the next level in PnL.
You are on to something with this Open Level setup. This is *very* promising work by you. Build from that and slowly do the work to expand your PlayBook.
*no relevant positions