The day after a bad day - usually as bad, if not worse.
I entered a short trade before shutting down for the day. The price was where I said I would sell. I am not intending to do anything about the position, or even look at a CL chart until after 5am ET today.
About CL Trades 9/27
I had some time to mull over my Monday trades. This was what I had on my journal (my other journal) where I document my preparation for as well as result of each trading day:
Buy @ 77.00 / Take profit at 77.45
Sell @ 77.48 / Take profit at 77.00
Sell @76.70 / Take profit at 75.65
Buy @ 75.60 / Take profit at 76.60
It's an approach I took to help me with my limit orders (I usually use stop or market orders given that my trades are mostly momentum trades) .
There is basically nothing wrong with the approach, except that:
- I had no idea how to set a stop for this method. As far as Monday's trades are concerned, I had opted for an absolute dollar amount, which I then became uncomfortable with. A 5 to 10 tick stop feels a little tight especially at market open. So I widen it to my daily loss limit. when CL's pull-back turned into a complete reversal, I reacted by removing the very thing that was there to protect me against a surprise like that.
- Setting a profit target is über bad - for me. A lot have been written on the topic - there's a school for it, and a school against it. I won't attempt to write a thesis, but will find a day to document my experience with setting a rigid profit target.
All in all, I'm still keen on figuring out how best to trade off key levels that I have identified, using stops that I can live with. Yes, I am learning to do something new again. One day, I might just really seriously look into market profiling too. After all, I do have all these beautiful charts that J sends me every day....I wouldn't even have to buy a book. Ha!
Going forward, I'll be posting less regularly, because I will definitely be trading less frequently. Although I am allowed to continue to trade my own account during the US session, I will be taking only those trades most familiar to me given that I won't have all night to manage a trade gone bad.
I am going to become a morning person in 2 days' time - as in I'll have to target to arrive at the office by the time the Sydney market opens. No other job in the world could get me up this early - at least not ungrudgingly.
I was at my previous workplace yesterday to have lunch with my ex boss and ex colleagues. One of them - the "baby" of my ex boss's team - joined the organization a few days before I left, and was introduced to me on my last day of service. Half way through lunch, she commented that I looked like a people-person. My other colleague, a sweet and bubbly SH, helped to clarify that I am a "select-people" person. So yes, I had fun in the 7-person gathering, and I will miss all these folks dearly - which is of course extremely unusual given my very aloof nature...
AND, I am now all set to move into a new chapter of my life. Yipee!!