small change, big results
Some days in trading you get a eureka moment that you feel the market has been trying to beat into your head for a long time... it just seems so obvious. For myself it was this...
Stop fading the strong moves without robust reasoning.
Seems so obvious, but every day I am trading with a big swinging dick... that guy who has a huge account... and he can keep fading, and keep adding, and keep averaging in.. until it doesn’t take much of a market move for him to go from down $300,000 to up $100,000. But that isn’t me, and I can’t trade like that.
Yea, but it rubs off. So what used to be fading the market at logical pre-planned levels... somehow became fading any strong move, and then trying to average down, until suddenly I am averaged in 5 contracts and down a lot with no edge... just hopeitis.
The day I really came to grips with it, was when I lost almost my whole weeks profit in one day...a Friday. That sucked. Had to go through the whole weekend thinking about what I had done.
So I decided to work on just changing this one behavior. I made a conscious effort to be aware of it, and to try to stop it.... with one simple add on. Like a plug-in you insert.
Wait for at least 4 candles to balance out before you fade.
See, I didn’t try to completely change what had become a regular habit, but I changed the outcome by adding one simple feature to the behavior. That now slows me down, at least 3 minutes in day trader world, and it has been over a month and I really see the difference in my account.
Small change, big results.
