Todays Musings

Posted by Deb | Day Trading Journey | Thursday 27 May 2010 11:44 pm

The begining of my trading today was boring.  I set up my trading platform and my graphs software, watched the market for 10-15 minutes, then entered first with one contract, then with 2, and in 20-25 minutes I made $175 with 3 contracts.  That was enough for me, so I closed down everything and went on to do something else.

Then I remembered an outrageous bill I got today, and thought that maybe I should trade some more so that I can add to todays profits the amount of this bill ($125).  I debated with myself, as it is really against my rules (my self imposed rules of trade).

I decided to give it a try, and immediately saw why I needed the rules:  the market went the other way too quickly.  When it begun going up (and I entered with a short) I did my usually trick of entering with one more contract in a higher point so that a smaller shift of the market will be enough to make a profit, but the market continued going up and I was afraid to enter with one more contract.  My losses begun to grow more than I have seen in a long time.

In the end everything was ok.  The market went back down and I exited this position with a profit of $150 on 2 contracts.  But this did give me a scare;  I don’t want to go back to losing.  I know I should not jump ahead.  I would like to make already a bigger profit every day, I have debts to close, but jumping ahead may endanger the profits I have.

It is strange, it seems all this futures trading business is in your head.  Once I know the method, it is up to my psychology and my confidence in myself to make a profit.  If I jump ahead, it is my own psychology that will make me get unconfident and lose.  E.g., today if I have 2 contracts go back and make a potential loss of $100 that doesn’t scare me, as long as I am sure (or almost sure, nothing here is 100% sure) by all indicators that the market is going to turn back.  But if I were in with 3 contracts and the potential loss is already $150, with every pips making it growby another $37.5, that does get me scared and I may run out too quickly, making a loss instead of a profit.

Anyway, I do hope I will in a not-too-far future feel more confident (and also have a bigger account) so I will be able to make bigger profits every day.  If every day I would see a $325 profit as I had today, that would make me happy!

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