Today was my First Black Day of the 2015. I definitely made a bad trading since the morning and with Emotional involvement. The Non-Farm Payrolls injected volatility in the market and this did not help me in the afternoon, making my trading more difficult and I triggered other bad trades that affected my total equity. In practice I closed only one trade in profit. Emotional Trading.
It is strongly necessary that the percentage of trades in profit become higher of the ones in losses.
I have recovered almost all the losses of today with just one trade on $SPX500 entering in the break even, but definitely It is not acceptable that one trade has to recover the situation after many mistake.
The morning was bad, I had a good trade but I wanted to wait the end of the bounce hoping to see more profit in the new down front, but it squeezed my trade closing at zero. I tried again but I collected only three mistakes, squeezed each time.
Here you can see what happened:
- I didn’t close the good trade when there was the reversal signal, waiting a new fall at the end of the bounce up.
- Conviction that the end of the bounce was there and a wrong evaluation of the Stop Loss on eToro, I did not consider properly the spread.
- Again the wrong Conviction of the ending of the bounce, another wrong evaluation of Stop Loss because the spread.
- Risking another trade in sell at a higher price that went in Stop Loss again.
The result is that it squeezed my trades each time, then I have lost money (fortunately recovered later for the most).
The lesson is:
Don’t enter in the market again and again if your plan has already failed.
I was in profit, but now I close the week in red for my manual trading. But I always hope to get the last trade of the week that can let me recover the small loss that I still have. Emotional Trading is always a problem.