Monday 5 August 2013

050813 1. Psychology problems in AM. 2. 252 Resumes. 3. Trend Setups can use S/R as well as 21?



P/L: -1.3 / -£20.60   CAP: £2534.65

Trades
A:  LSH avoided because price had not yet PB to 252 =  only short into 252
B. REV to 252 avoided because RRR less than 1:1
C. HSL avoided because RRR less than 1:1
D. 2x Support (252 & h1 S) + HM. Against trend but seeing that it returned to 252 LT mean there is some probability that the LT mean might re-establish itself. This setup I mentioned before in my 230713 post but didn't pursue it
1. HSL (-1). Exit ISL. Good trade bad luck. Could argue that confirmation came on H1 S. But S&R are areas not exact prices.
2. HSL (-0.3). Exit 8SMA. Fault PRice had FTMNL then was ATMNH =  trend weakness so shouldn't have traded.
E.  annoyingly didn't touch 21EMA /  252EMA, but interestingly trigger touched H1 R.

Notes: 
Guide worked really well this morning, keeping me out of poor trades.
Trade D was interesting as it has occurred before in my 230713 post but as I said above I didn't pursue it, however it does look interesting. One fault I made is not identifying all of the H1 S&R areas missing 1.32650 which was the necessary level for this trade to work (as 2 supporting factors are required).  Setup is as follows:  Trigger PB/RL and touches 252 and another S/R factor,  confirmation = close abv/blw trigger.
Trade E was clearly a HSL but didn't touch the 21EMA (which acts as a S/R for the trigger) however on this occasion the trigger touched H1 R (which is in itself a resisting factor) and worked out. Can I adapt my trend trade setups to...  trigger touches S/R,  conf closes with conf  + 8SMA (if not aready abv/blw it)?

Psychology Notes: Woke This morning feeling low, unmotivated with a general lack of energy.  Which was disconcerting as I thought I had done enough work on Friday to get me back on track emotionally after my poor results late last week. However I wouldn't have felt this way had I done the work required. I've had a good weekend but I focused on having a good time (ie relaxing, socializing) but I did nothing significant to nurture my bruised psychology....The question is what should I have done instead? A: I needed to reframe / put into perspective my failure, basically I am " making a mountain out of a mole hill".  It is of course important to recognize failure but this is the first personal failure in 3 weeks of trading which is really quite good considering I'm not a robot.  So maybe my expectations of myself were too high? This I don't accept, I believe the only limits there are, are the limits you set yourself. Therefore accepting poor performance is merely me accepting poor performance as an acceptable behaviour... Or I was being too hard on myself and need to accept that even when striving for excellence humans can still make mistakes? This I prefer as it sets no limits on my abilities but also doesn't put superhuman expectations on my performance. I also think I could have "acknowledged my achievements",  IE despite the fact that I shouldn't have placed the trades the setups were correctly identified and my risk management was good ( it wasn't all negative).I actually feel a lot better now! Which goes to show that it is the quality of the exercise rather than the quantity of it that is most important. This is also something I think I need to add to my progress post on my blog about psychology.
Progress:  acknowledge your achievements, especially in failure (so you don't beat yourself up, it's not all negative). acknowledge the power of your strategy especially in success (so you don't get a big head). Set yourself no limits but accept that humans are not robots and will make mistakes.  

Summary:  All in all a much better day. Personally followed the strategy very well, made one mistake at the end of the day failing to notice Trend weakness, this was because I was blogging instead of viewing my guide.  Definitely an error but I traded it well and kept the loss small. 1 potential new setup = LT trend resumes: trigger PB and touch of 252 + S,  conf closes with conf.  1 potential setup update = trend trade trigger PB and touches 21EMA / S area,  conf closes with trigger and 8SMA. 

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