I am back to blogging having just re-emerged from a self imposed internet exile. I am going to start a trade review series to help me with my work. The idea is that the act of writing a trade review here every night will help those who read it, but more importantly myself as I am forced to review my trades more diligently to pick the ones that serve the best examples of what to do or, more likely, not to do. I will try to post one good trade and one bad trade per evening as a minimum, and in the future, hopefully tape of those trades as well.
The entries and exits are notated on the charts, but I will add comments from time to time to try to illustrate what I am taking away from these trades and reviews.
Good trade – XOM
XOM was not on my radar until news came out in the morning about a discovery in the Gulf of Mexico. I began to watch the level 2 on XOM and noticed it was active with some defined levels (80.50 was refreshing in the pre-market trading).
Bad Trade – FCX
I want to stress that everything in the note was NOT part of the bad trade. It is simply the first one I took. What happened afterwards was the problem. Frustrated by missing the move I began to revenge trade FCX. The end result – it was my biggest loser of the day, with 4 losing and 0 winning trades in the ticker. There are probably tones of lessons here, but the ones I have taken from the experience are several.
1) Disciple – Who cares, there will always be other trades. Move on, and find the next winner.
2) Revenge trading is a no no – the market, stocks, its all just numbers and letters. The market doesn’t owe you shit, it is out – every day – to annoy, frustrate, hurt and kick you in the balls. Get over it.
I’m making a list of memo’s for myself to post next to my terminal. I will post them later tonight. Thanks for reading, and glad to be back.