So overtrading is something I am usually guilty of, but today I did it like there was no tomorrow. The results? Well of course I gave back all my winnings until I ended up pretty much even for the day (which all things considered is not a bad thing! I could have given back so much more).
While I am getting significantly better at cutting losses quickly (instead of holding them until they become ugly monsters. Full disclosure tho, I am currently holding one of those), I tend to trade WAAAYYY too much. I know the best times for trading are after the market opens and past 2pm, preferably 3pm, but it does not matter, I still try to predict breakouts here and bounces off a dip there.
On a good day I will actually manage to scalp a few cents here and there and end up with cute little gains (during the middle of the day that is), but these results are nothing compared to what can be achieved with a well timed and well managed trade (we all know what type of trade I mean). Also trading less-than-great patterns during random times of the day makes the risk go way up too. That is something to keep in mind next time I am are itching to place a trade in the middle of the day.
So, the summary for the week:
Things I am doing well:
Playing it safe when in a trade and not getting greedy.
Cutting losses when I have to (still some room for improvement, but my losses are not getting out of hand).
Planning my trades before I go in.
Sizing my position according to my plan and risk.
Reading about trading psychology which helps immensely (Reading "The Daily Trading Coach". Read "Trading in the Zone" before).
Logging and reviewing ALL my trades, even the breakeven ones, not just the meaningful ones.
Things I am doing bad:
Trading in the middle of the day and overtrading.
Not studying enough.
The good news
I seem to be getting morning dip buys again, which have traditionally been my best pattern. I did a couple of perfect trades on Friday morning.
Afternoon HOD breakouts are starting to work out too.
The bad news
I am holding one bag