Today I maximized my weaknesses. I found the set up that is a trading weakness for my system, traded it with size, and now sit with a P&L that represents the worst of my trading. In one sense this is quite impressive. I did not just underperform this open. I did as poorly as I possible could.
Fresh news hit that BP is close to sealing their oil leak and it gapped up on the open. A bullish flag pattern was forming at 45. Before the open I thought:
a) If it trades cleanly and strongly then I will get aggressive.
b) If it shows me it will tick at every price I will move on or trade with very small size.
What pattern did I get? Pattern B. How did I trade it? Aggressively of course. I journaled, “BP is a piece of shit, dog shit, nonsensical, reversing, touch every price, garbage, idiotic trading stock. TRADE STOCKS THAT ARE CLEAN YOU JACKASS!”
I prefer stocks that are trending, In Play, and showing me weakness on the tape. Stocks that reverse and touch every price breed a day of frustration and losses. Stocks like BP today.
I should have started a position in BP at 44.80 and just held it for an intraday, all day trend play, or moved on. Instead I loaded up on the break above 45.25 only to watch this move fail. I did it again only to watch the next pass fail. I did it again, same result. I did it again, watched BP trade higher to 44.57. Victory? No I got stopped out below 44.15. Awesome!
MON was the type of stock I should have traded. Weak. Trending. Not lifting 49. Dropping out. Losing in this stock would have been acceptable. Losing in BP was the worst of my trading. It was me maximizing my weaknesses.
21 Comments on “Maximizing My Weaknesses”
Every trader is his own worst enemy sometimes. Been there many times. Sometimes I think the person on the other side of the trade is your alter ego.
Every trader is his own worst enemy sometimes. Been there many times. Sometimes I think the person on the other side of the trade is your alter ego.
Every trader is his own worst enemy sometimes. Been there many times. Sometimes I think the person on the other side of the trade is your alter ego.
I´m sorry it has been a bad day, so far, but thanks for posting since it reminds me that no matter how long or how good you think you are, the market always has a lesson up its sleeve.
I´m sorry it has been a bad day, so far, but thanks for posting since it reminds me that no matter how long or how good you think you are, the market always has a lesson up its sleeve.
I´m sorry it has been a bad day, so far, but thanks for posting since it reminds me that no matter how long or how good you think you are, the market always has a lesson up its sleeve.
Joao,
Thxs. By the way, bad trading does not mean a bad day. It just means bad trading.
Have a great weekend. And thxs for contributing.
Bella
Bella, thanks for sharing this. It’s good to see a top rate trader sharing a really shit trade in an honest way. . I’m impressed. Bryan
Bella, thanks for sharing this. It’s good to see a top rate trader sharing a really shit trade in an honest way. . I’m impressed. Bryan
Bella, thanks for sharing this. It’s good to see a top rate trader sharing a really shit trade in an honest way. . I’m impressed. Bryan
I gotta admit, after my day this post was “comforting”. Thnx for the transparency. Still trying to grasp the bad trading day doesn’t have to turn into a bad day concept though. Hard for me to detach sometimes.
By the way, I think you are reading my journal entries (“trade stocks that are clean and easy to read Idiot” is what I have).
Have a great holiday!
I gotta admit, after my day this post was “comforting”. Thnx for the transparency. Still trying to grasp the bad trading day doesn’t have to turn into a bad day concept though. Hard for me to detach sometimes.
By the way, I think you are reading my journal entries (“trade stocks that are clean and easy to read Idiot” is what I have).
Have a great holiday!
I gotta admit, after my day this post was “comforting”. Thnx for the transparency. Still trying to grasp the bad trading day doesn’t have to turn into a bad day concept though. Hard for me to detach sometimes.
By the way, I think you are reading my journal entries (“trade stocks that are clean and easy to read Idiot” is what I have).
Have a great holiday!
Fred,
Love the journal entry. Hysterical.
Bella
Fred,
Love the journal entry. Hysterical.
Bella
Fred,
Love the journal entry. Hysterical.
Bella
Bella,
Are you golfing at Torrey Pines? If you are I can watch you from my office window. However I won’t judge your game based on a checklist or anything.
Bella,
Are you golfing at Torrey Pines? If you are I can watch you from my office window. However I won’t judge your game based on a checklist or anything.
Bella,
Are you golfing at Torrey Pines? If you are I can watch you from my office window. However I won’t judge your game based on a checklist or anything.
Michael.
I did last weekend with our friends from TradeIdeas and Steve. Torrey Pines was too long, the rough too thick, and the greens too fast for someone who last played two years ago. Other than that it was a blast! What a beautiful place!
Bella
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