over position in one trade ruined whole day effort. Recency bias!
I had good profit other day with AXP and just because of that today I initiate AXP position with big size. There was small technical edge, thats it. Recency bias
4/15:
Observer inner feelings during trading hours, esp action/monitoring phase:
Sleep was good, mind more relaxed today. Meditation and Exercise and Mantra all done.
Useful Beliefs: Moving around, getting off the monitor for even a minute helps. When you out of the trading room, think about one useful belief and one useless belief. .
Marked punishing short squeeze, me prime example. Time to change the game plan. Sudden up-wave moves is phenomenal. So be aggressive at support/buyers dip.
Useless Belief:
Though big gap down will make ongoing trend day but was not the case, Market bottom at 10:00 am with TICK divergence. Channeling the trend and looking for higher high/low will improve my ability to see market as it is.
Winner from previous day are going to make next day. Big NO, because of recency bias, I won't be playing edge.
Playing low volume with big spread socks. Losing money. Look for 5 min vol of atleast 5000.
+ve For Day:
200 JumpJacks at 10:30 and another 200 at 12.30 pm.
Late session was more productive. Was more in sync with market, able to recover some losses.
Position Sizing: Big failure, ended up having 1000$ loss in single AXP trade.
Things to Improve:
Monitoring. Let go NTFX trade and big winner turned into big loser.
Looking at bigger picture, hourly chart to figure out trend.
Plan for the day. Prep before Open:
Gap Lower: 200 Points, VIX.
Alternative: Upside. 2800, 2811. 2820. 2837, 2866, 2900
Dominant thesis: Down. 2750, 2737, 2726. 2707, 2700
Task:
Monitor SP100, sector ETF correlation.
% Change gainers/losers/premarket movers.
Day began with mediation, Trading Mantra,
studies top tasks of trading:
Things to improve:
I will visualize what I could have done mentally and replay it on-demand and see it as it is for axp and F position.
Action Task: Slight hesitation to put buy order, and SPY moved up so fast. I should have placed the order for bigger 5 min bar picture, as it was minute tick.
Just play for one swing.
Trading habits:
1.#: Impulsive Trading: Yes
2. # Practicing systemic money management: No
3. # Pulling trigger or following my plan: Yes
3. # Blowing off your after hour homework or preparation: No
5. #Overstaying my welcome in a trade: No.
6. # Listening to other people's opinion: No
7. # Staying out of market when I am confused: No
8. # Allowing too many distractions: No
9. # Surfing the internet and reading emails at as diversion: No
10.# Overtrading/Revenge Trading."Yes.
Bad Habits: Impulsive and Over trading, Failure of position sizing (Greed).
Good Habit:
G/B:
Avg driver, but taking narrow bumpy roads, not looking for easy highway (hourly trend).
Destination was relatively OK, but too many bumps of overtrading and over positioning.