Wow what a surprising and crazy week it has been for me trading. My goal was to go into last week and have my first green week. I am getting so close to really understanding the market and the pattern well enough to profit. But the market kicked me down this week and showed my how much I don't know, that I'm focusing on the wrong plays, and that I'm not disciplined. Even though I ended red on the week once again, I was forced to reevaluate everything and really learn how and what I need to study and improve on.
One of the biggest lessons from this week was that I am focusing on the wrong plays. Yes I have learned some patterns and how to find them. But I realized that I am trying to apply these patterns to charts in which they don't exist. Also, I am focusing on illiquid plays. Up to this point I couldn't understand why Tim and the top students aren't in the same plays as I am. But after I realized this and started digging deep it was because all these plays are volatile enough and don't have enough volume. Once this lesson clicked in my head, my watchlists have improved drastically, and I am finally looking at tickers that Tim and other top students are playing.
Another big lesson I learned this week is that I am trading too much. Even though Tim says this over and over and over, I still wanted to make money every day and would look for trades daily even though they weren't ideal setups. But because of how badly I want to be a profitable trader and make this my career, I forced myself to finally understand why I keep losing. Now my mindset is much closer to sniper trading. I will only trade an ideal setup and if there's nothing to trade on the day, I will simply sit on my hands and be patient.
A third lesson that was big this past week is cutting losses. I came into this week completely set on making it a green week no matter what that disabled me to cut losses quickly. As soon as the trade didn't go my way I so badly wanted to make money that I just kept holding hoping the stock would come back. I will be much more disciplined with cutting losses. I also will be playing much smaller positions which will keep my losses smaller and it will be a lot easier for me to just cut the trade and jump back in if there is another opportunity.
Finally, a big lesson was to study smarter. Up until this point my mentality was to just watch the dvd's and video lessons and with time I will learn everything. I started feeling like I was lacking something. I needed a much more in depth study of the market. I needed to go much deeper on understanding plays, patterns, charts, news, etc. So now I spend a lot more time analyzing the market. I'm reevaluating all the trades I'm doing multiple times. I'm trying to track everything. Also, I started learning SEC filings by going through the DVD as well as actually opening the files and trying to make sense of them. This part is difficult to me because of how boring it is, but I understand that this is crucial for me to have a better edge with trading.
In summary, even though I lost this week in my money account, I really feel that I won in my knowledge account. My knowledge of the markets has grown exponentially this past week and that is much more important in the beginning of my journey that the money I make right now.
I won't post my trades this week, I just don't feel like it, but if anyones interested feel free to look at my trades. I verify all my trades usually the day after I trade or at the end of the week, so everything is up to date.