Today we had an incredible opportunity to get short and they happened back to back to back to back.....20 points.....over and over and over again. How many points did I walk away with on the day? A measly 5 points. I really wish that I didnt trade indexes because I really feel like everyday I put rules and actions into place to figure out how to make money and be consistent but I just constantly lose and constantly forget "important" rules or my "important" rules are the reasons why I lose the next day. Its just pure insanity that I cannot understand for the life of me. When I go inside of my head and even just think of trading I just am immediately confused about what the fuck I am supposed to be doing.
Futures Imbalance
- ES YM NQ all ripped up through the CPI candle high so I expected the russel to do the same and it was lagging behind. I saw some resistance and I took profits at the conservative level instead of the aggressive level. I should have just let my target sit and wait to see what happened. This was a good trade though and I entered once early and stopped out before the low was hit which is the biggest problem I had today. I was so scared to protect my profits because yesterday I was big red and today I stopped out of 3 trades that wouldve paid me at least 10 points each.
- these trades are just so insanely unacceptable and disgusting
Why did I do this?
1. Scared to lose my profits of $40
2. Scared bulls will take over price action and rip it back up
3. Was not shorting into FVG or anything that gave clear risk
Lets put solutions into place for each of these problems
1. Scared to lose profits
Solution
1. Remove PnL from screen. This should never ever ever ever mean a single thing in relation to the day. Only points should matter. Even then they dont matter that much but way more than the PnL. If I ever want to size I need to not know how much I am up or down on the day unless I hit a max L
2. Dont go over max loss like you did yesterday. On a weekly basis I must figure out how to make sure I still walk away with money which I definitely can do. Lets do some math
Goal: 20 points per week
avg: 4 points per day
If I am green 4 points every day I will make 20 points a week
If I average having 3 green days and 2 red days then I will then have to average 10 points on my green days and 5 points on my red days.
MUST TAKE GOAL WHEN IT IS HIT ON THE DAY AND NOT GO FOR MORE. THIS IS ESSENTIAL FOR THE FIRST MONTH.
There are 2 options for the week.
1: everyday green and make 4 points
2. 3 green day 2 red days 10 points avg on green and 5 points avg on red.
If I am able to do this every week consistently then I should be able to make $100/week which is nothing but if I can do that for 3 months then I will be able to definitely size up slowly from there. I also may use 2 contracts on some positions depending on what happens so if that happens then I will have to have even stricter rules. If I use 2 contracts and lose 10 points on that trade I have to make sure for the rest of the week my stop out is 3 points per day and with only 1 contract.
Another solution:
- I need to get rid of my anger and resentment at the idea that my work must translate into some type of reward. The world does not work like that. I am simply waiting until the threshold of experience has taken over and I am able to finally make the money I know is possible and attainable. The only way that I can get rid o this constant anger and anxiety of lack of performance I must make trading a 9-12 endevour and then 1 hour of studying at end of day or in morning. Other than that I am not allowed to work longer on trading because when I spend the entire day focusing on trading I create this anger and anxiety related to the fact that I want to perform NOW and not tomorrow or next week, month, or year. I need to be able to delay the gratification of this or I will possibly never ever find the success that I know it possible. This is great anyways because I can work on many things from 2-6 whether that be an airbnb, a different job, or my other businesses. If I can grow those as well as trading then my serendipity will be much higher which will make me luckier which will make me happier which will allow me to not be so scared of money etc.... This could really be a game changer for me which I say a lot but idk if you noticed but I kind of care a lot about this and I really want to succeed more than anything in the world.
2. Scared bulls will take over price action and rip it back up.
- If we do a massive drop through a key high of CPI and then use it as resistance its time to get short man. Especially if its a big data day because the market is just drooling over it.
Solution: Before you take a trade must identify if we are in range, uptrend, downtrend. Are you taking continuation or reversal? Is there an FVG for the trade? do you have a clear risk? Are you willing to take a loss and let it be the last trade of the day if its a 5 point loser?
3. Was not shorting into FVG or anything that gave clear risk
- If you dont have a clear risk and FVG or something of that nature there is absolutely not reason to take that trade whatsoever. In fact, if you do take those trades often then goodluck because you will never make any money in the stock market. Saying no is the most important part of trading and also the most difficult. You can really make money at any moment at any time from a 50% chance yet people lose everyday forever. How is that possible?
Solution: Dont take the trade unless you have clear risk. Continuation and Reversal are FVG oriented. Futures imbalance is not.
MES 5m
- This backside after the fakeout rally in the morning was absolutely phenominal in terms of short opportunities. We hit FVG after FVG and failed spectacularily every single damn time. Fucking incredible. This is a day where the weekly goal can be met in a single session. Nearly all of these FVGs were tradeable and I took 2 trades on the backside and the first was an early short so I stopped out for a 1 point loss even though it dropped 20 immediately after I stopped out. Then I took another one on the FVG at 4525 and instead of holding for my stop which was at 4527 I stopped at 4526 because I thought it would break above my level and I would lose more profits. I lost $5 on this trade and again it dropped 16 points 5 minutes after I got out. That was 2 back to back nearly 20 point trades that I had a PERFECT entry on but instead of holding I got out.
