Managed to get myself ready for the day, keeping one eye on the market (how sad) and watching for some action around 5320, where it’s been stalling around for a while now. Turn my back for two secs to get some food and it’s shot straight through. Patience is a virtue. Shame I have to hop on the tube for a meeting.
8.50am Opened up my trading account this morning, and saw the criteria had been met for one of my rules. Entered the market long and coulg have taken a +7 pips profit, but “let my profits run, as advised in the “zen in the markets book”. The market was moving very slowly at the 5300 mark and I wish I had taken my profit, but you live and learn. Moved my stop to +1 and got stopped out on the market reversal. Small win, but overly happy that I am clearly learning and improving.
I was thinking about writing again that today was another uneventful day in the markets. Or if not that, at least a difficult one. But it wasn’t. The market is doing it’s thing, moving up and down, since the open. That’s all it ever promised to do I guess. So what’s my issue? I’m sitting here waiting for the “perfect conditions” – yes I know there’s no such thing. Okay, so I’m looking for a clear signal to enter the market and, like yesterday, I haven’t traded yet.
That little voice in my head is saying “It’s okay, you’re learning, watching the market, when you make a move it’ll be right”. Fair enough, I may be learning by watching the market, but I’m getting a bit concerned about my lack of trigger pulling. Now, I know jumping into the market at random is gambling and a surefire way to lose, but I’m at the point now, where I see my signals (albeit not perfect), and still can’t muster up the courage to put in a trade.
I think I have a bruised ego – seriously, hear me out. I started thumbing through Zen in the Markets – Confessions of a Samurai Trader this morning. The book starts of talking about how there’s no place for your ego in trading and it’s your ego that’s responsible for you taking profits too early, and letting losses run (which is the opposite of what you want to do). It’s also responsible for feeling the pain from your losses and pleasure from wins. From what I’ve understood the aim is to detach yourself from the past activity of the market, see what it is telling you and follow it’s signals, all the while, remaining detached from the outcome (profits/losses). Makes sense, right?
The aim for today is to get over fear of losing, spot the entry signals and make a calculated entry based on risk/reward. Now that I’m accountable, I’ll update this entry with results.
So, I bit the bullet. Made a loss. Totally rushed into the market (since I said I would trade and have to be somewhere in the next 20 mins). Lesson learnt: don’t trade because you want to, or because you’re in a hurry. Only when the market signals you to, and you have no control over the market, so if it’s not showing you what you want to see, walk away and come back later. And I’m going to do just that.