I have been giving a lot of thoughts on Went Fishingâs comment last night. I thought that my lack of confidence is my barrier to entry any trades. I took a look again the past trades I missed. Yes, I would have more losing trades; I would be stopped out more often. But the outcome for taking the missed set ups will drive more profit for this week. âAs a trader we have to learn to embrace the uncertainties once the setup is proved to workâ. From the chart I can read my behavior, the fear of losing and taking a loss hold me back to get in a trade.
And the hesitation and fear come from âmy not yet embedded my head replica tradesâ. I thought I have already mastered at least one setup. But not enough, I havenât had that robotic reaction to my setups. When I realized those are sounding setups, itâs too late to get in. I still donât trust itâs my best setup until I realize itâs too late to get in. Before I pull the trigger, I thought âwhat if it turns back and against me? I might need more confirmation on it.â To conquer that, I am going to do a more thorough analysis on a separate spreadsheet from my trading journal. Document entries, stops, winrate, profit on set ups etc. to give myself more statistics to prove itâs truly a great set up and I am willing to risk with no fear, because I know the outcome for the set up is x% of winrate, x% of profit margin. Then I believe I will begin to have a replica trades. Maybe I could become CP soon?
Anyhow, last night and this morning I briefed myself that: no fear, take the set up you have been working on, you have nothing to fear about, because you will stop once you reached $200 loss, and so what if that happened, you are just going to go back to SIM for some more time, no big dealâ!
So here is my result for today.
First trade is a short, price sell off cut through pivot point then retrace back to pivot point, topping tails on a Doji bar sets up a sell signal. My plan was to continue ride the momentum then buy at the end of the fluid emotional selloff. But price quickly formed a base âD/B pattern on 2 min chart. On 5 min chart it quickly formed long bottoming tails showing a lot of demand is here. I was stopped out.
Then I took a long trade, the stop was a bit wide. It worked out well at first, then next 10 minutes I was whipsawed by a large bottoming tail again. It took my stop then went back in favor of my direction. It was brutal. I have seen this lot. My fault for the trade is not tightening my stop quick or I could leave a wider stop at 2 ticks below the pivot low. My stop was an odd place to be at. Because this is the type of double bottom retrace almost 100% type of pattern, or you can call it a triple bottom, plus the speed of the going back up and the large bottoming tail at the retrace bar. It usually offered an even more high probability entry. Read this from Al Brook. Besides, look at the left side, the fluid selloff creates no S/R line. Meaning we have less sellers hided at the range. Could be a great place for a high R:R trade.
Quickly re-asset the situation, I re-entered.
TRADE A: finally worked. Long , took profit at the 61.8 retrace where is also a R level. It was a right thing to do. 31Pt.
TRADE B: Buy set up at Pivot Point, a double bottom at 5 min chart. Set my target at the range high, but if the momentum is strong , I could hold it until it test the HOD. But I didnât hold the trade very long because market was very slow and the candle retraced a bit too deep. Only 10Pts
Todayâs PnL:$88 5 trades, 40% winrate
Weekly Recap:
PnL: $274
Winrate: 47%
Avg trades per day: 4
