Wednesday, February 3, 2010

1 trade a day

I was swimming laps in the pool and thinking about my trading after my terrible morning session. There is no escaping my childish ego and get rich quick wishes that drive my emotions and me with them. I can stop trading because it's obvious were this path is leading. To be honest I can't really do it any more sanely. It's really hard to do something that is against your judgment because you feel so emotional and don't have control over yourself. Do it over and over from day to day.
So I had an idea for a new plan. It has potential because my ego hates it as much it hates longer term trading. I can make only one trade a day. I start day pretty much rational and I wait for good opportunity. Before I would stop after few trades because I would lose myself after. Now I can't trust that any more to know when to stop, today is good example for it. So let's trade only trade a day. As I said my "ego" or something inside of me that is irrational and have it's own agenda doesn't like it because that plan doesn't provide me with opportunity to "get rich quick". I'm pretty much embarrassed to talk about those primitive motivation that I have and that controls my trading but if I can show all this "wonderful" trading I can show this also.

Few days ago people recommended to me that I trade more longer term. Truth is that it's too slow for spectacular results. Don't get me wrong, I don't get spectacular results this way either but I have feeling that I can. Big leverage and intraday moves could do wonders in a span of one day. Well at least it's my secret wish.
So I wrestle every day with myself and now I'm starting to lose the battle.
I don't know will I trade longer term but I know that I really like to scalp. So one trade a day will be just enough of what I can control be it a winner or a loser. I'm not positive yet will this be my plan of action from now on but I'm very close to it. My "ego" as I call it, doesn't like that idea because he losses his potential by that kind of trading. Well maybe "he" could go camp in some other area of my life because in trading I'm on the edge of quitting as things are standing now.

So, if one trade a day is all I can handle then no problem trade only that. I don't know will this dance around my emotions and my personality fail as many plans before failed but I don't have many roads left any more so it's easier to chose.


Anonymous said...

I can so much relate to what you are writing.

Risk Control Master said...

If you are use to trade couple rounds a day, one trade a day makes you pick the best one, or sometimes missed all of them because you are picky. That's a good way of limiting loss and focus on good setup only.

Keep it going!

FX said...

Yeah Anon I believe that those problems are problems of many, thanks for the comment.

Risk Control Master I will became my own risk control master if I chose to do this. It's probably only thing that I can control right now. As you are saying I would probably think twice before I put the trade on because it's the only one. That could be a good thing from that perspective also.

kihei said...

I cannot agree to the premise because in effect you have to pick the perfect entry point, and that's impossible. My experience says a good trader is able to manage his way out of losing positions.

So you have to start out well-capitalized. Position size so you can't bust out but trade around a core position until you hit your targets.

FX said...

Kihei I don't say that one trade a day should be profitable trade. I Know I can't find always profitable one. I'm saying that I don't trade past that first trade be that one loser or a winner.
It's probably true what you say about good traders, but you wouldn't put me in that section when you look at my out of control trades.
One trade a day idea is about controlling myself and nothing else.