4 Trades - 3 Losses - 1 Open - Sanity Intact: A Personal Performance Recap
Yesterday's trading session wasn't exactly a banner day in terms of profits, but when it comes to personal performance and sticking to the plan, I'd say it was a solid showing. I ventured into four trades, with three losses and one still open. Dive in for the nitty-gritty details.
First Trade: We witnessed an overnight range formation, followed by a fleeting attempt to break to the upside. Sensing an opportunity, I opted for an early morning short. However, upon realizing the impending release of CPI data, I decided to close the trade for a modest profit, not wanting to risk exposure before the data drop.
Second Trade: The CPI data provided a nice boost to BTC, pushing it upward. But after a significant volume drop at the CPI high, the price took a swift downturn. Anticipating further descent, I went short on a dead cat bounce, entering at the 0.382 retracement level. The price, however, continued to climb, and my stop loss closed out the trade.
Third Trade: Undeterred, I went in for another short as the price pushed up once more. In hindsight, this was a poorly-reasoned trade, lacking any technical foundation. It was quickly closed out as the price advanced to the VWAP.
Fourth Trade: With the price stalling at the VWAP and golden pocket level, I took one last short position. This time, the trade shifted into profit territory and remains open for now.
Lessons Learned:
- Abstain from mobile trading: The third trade was executed on the go (via mobile), which I believe significantly impacted my decision-making process. A mobile screen simply doesn't provide enough data (session volume profile, for instance) to facilitate informed decisions. Reflecting on past experiences, I reckon I wouldn't have entered the trade if I had been at my desk. To remedy this issue, I'll refrain from trading on my phone.
- Maintain composure: Losing streaks can tempt traders into the dangerous realm of revenge trading, where emotions often overrule rational thinking. I've succumbed to this pitfall before and could feel its pull yesterday, urging me to increase position sizes to recoup losses. Thankfully, I kept my cool and adhered to my risk management rules. While my trades could have been better executed, I mostly followed my established guidelines.
To be continued...