Wednesday, 17 July 2013

Being Chicken and Trading Don't Mix - Feel Blessed

I just want to highlight that I feel very blessed today that I came out with a positive return, I normally don't right senti-menti stuff but I really do. Let me tell you what happened.
  1. My Order did not get filled for what would have been a beautiful trade - $YHOO
  2. I got desperate and went after $YHOO trade, broke a few of my trading rules and didn't know how to manage my trade because I was not familiar with what I had just done
  3. My second trade I made failed, right away I was out $-18, so because of this I let go of my $YHOO because I did not want a negative Profit / Loss on my screen for today. 
  4. RIGHT after I sold $YHOO it shot up like a rocket (this got me upset) but you know what? I walked out of $YHOO with a gain and it was a trade that wasn't in my plan so I was proud
  5. I went in for round 2 on $AXP and won, but again because of my worry that I did not want a negative P/L for the day I let that go early. 
What have I learned?
  • Treat each trade separately, do not look at your profit / loss for the day. If you try to manage your profit and loss you will end up being a break even trader, that is why I am happy today to walk away with +$28 instead of a $0.
  • Manage your trades not your profit / loss
  • Do Not BE a....
 Chicken!

Now lets concentrate on my trades:

Trade 1: $YHOO

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Read the commentary in the picture to get a better understanding of what happened.

















$YHOO Trade Tickets - LOOK where I SOLD!!! SO upset!



















Trade 2: $AXP 

Round 1
$AXP moved so fast I immediately got out of my position and took a loss. I did not like it at all.

Right Click Chart ,Open in New Tab
Read the commentary in the picture to get a better understanding of what happened.

















Round 2
Again I was still scared and still thinking about my profit and loss rather than managing my trade, I took profits way to early and did not give $AXP the space it needed. I guess I am a little obsessed.


Right Click Chart ,Open in New Tab
Read the commentary in the picture to get a better understanding of what happened.


















$AXP Trade Tickets - Look where I covered and LOOK where price went!! Profits is in the management people, companies need good management, your life needs good management and so does trading, I did not manage these 2 trades with confidence, I wanted my money.






















Profit / Loss for the Day: +$27









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