This has been a pretty dreadful month so far. My birthday passed by serving no purpose except to remind me that I was getting older. My slump at work continues and I'm down about the equivalent of 3 good months for me to get back to flat. My blowup at online poker was unwarranted considering how well I was doing with the experiment. And most recently, one of my roommates completely left with no notice and was secretly doing her packing in the middle of the night. At least it wasn't the hot one.
Sometimes when everything collapses all at once, there is nothing better to do than to join in and blow everything up. Start from scratch with a fresh mind.
In trading, there are many suggestions as to how to do this, such as taking a break, cutting down in size, setting smaller daily goals and daily loss limits, etc. While all of these are excellent advice, I'm going to offer two of my own here.
One, get some sleep. I think I need to sleep better, get in and do some final research, and make sure my focus and concentration are at a prime for that first crucial hour of the market.
Two, focus on small successful trades. All successful traders make trades that are either big winners with higher risk or small winners with a higher probability of success. Since I need to get back on track, I need to focus on the latter. I need to refocus on getting the correct entry points and take my quick profits. Riding out the winners is a lot easier when there are more of them.
So that will be my focus for the coming week. I will generally cut down the size and risk on these trades and focus on taking quicker profits. The goals that I will set for myself won't be P&L related, but rather focused on finding a certain minimum number of these easy trades. When things don't work out or I don't behave according to the plan, I'll record it and look back at it. So hopefully I will have good progress to report in a week.
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