Since I started my new job as a prop trader I have learned an immense amount about myself – specifically my bad habits – in a short period of time. I have already filled one and a half journals with various scribbles: chiding myself, notes about intraday levels, reviews of trades, and reminders not to be an idiot.
Through this process I have identified several bad habits I have:
1) I get bored easily – this leads to me jumping into trades where I don’t have a clear plan
2) I still have a tendency to chase some trades
3) I cannot always identify when I am getting frusterated – this leads to poor trading decisions
4) I do not have a full appreciation of what level of volatility is within my means to manage as a relatively new trader
5) I have a tendency to give winning trades too much room which impacts my bottom line
Identifying these habits is the first step to breaking them. I am currently working on developing a set of guidelines to help me manage my trading and help me overcome some of these weaknesses. I posted this in the hopes that others who day trade can gain some insight. The first, and most difficult, step of becoming successful at day trading is being able to be brutally honest with yourself. Remember you can deceive yourself as long as you want, but in the end your bottom line won’t lie.
Will post market review later on.