The p/l statement definitely doesn't reflect the mistakes made today. As those of you who follow the blog know, I control my losses with intelligent position sizing. Except today - not so smart.
The most important thing to recognize about emotions is that they are illogical. Thus when the market is at extremes it is the least logical. That is when we must be our most logical to profit. Simple, but definitely not easy. So can you spot today's mistake trade? That's right kids - the 2nd long entry.
I'm very forgiving of my first position in any trade (also the lightest), but my 2nd position shows (or should show) that the market has blown through all expectations and that emotions have shown themselves clearly. I did not wait for that confirmation. I knew that this was a mistake as soon as I entered! Duh.
P/l wise this was a +35 day on 37k.
Thursday, April 30, 2009
Posted by Lord Tedders at 6:55 AM