Trades: Tues, 5-Jan-2010

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Day: Tuesday
Date: 5-Jan-2010

# Trades Made = 2
# Profitable Trades = 2 (100%)
# Costing Trades = 0

Max # Contracts Used = 1
Max Capital Used In 1 Trade = $500

Profits = $25.00
Costs = $0.00

Commissions = $7.98

Net = $17.02 (3.404% ROI)

January Cumulative Net = $25.53 (5.106% ROI)

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Things I Did Well:
1. Used my trading strategy for trading.

2. While reading my trading strategy to make sure I was following, did not get into a couple trades because I was following it, which turned out to be the right thing.

3. Went to bed early last night so I could get enough sleep. Though I awoke several times in the night, resisted the urge to get up to do sudokus or crosswords, but forced myself back to sleep.

4. Determined that I wasn't going to let my personal issues bother me while trading, which is my livelihood.

5. Ate a good breakfast.

6. Knew what time the economic indicators: Factory Orders & Pending Home Sales @ 8 am MST, Auto & Truck Sales @ noon MST. Waited for market reaction before entering trades.

7. Put my fib & trend lines on, which worked to the "T".

8. Showered, dressed, spent quiet time alone with the Lord before the kids got up. This helps me center and focus on the right things. It is God, despite any trading plan/strategies, that empowers me to be able to create wealth.

9. Had prayer, gratitudes, and Bible time with my kids before leaving for school. This really is an awesome thing.

Learnings From Today:
1. The very first trade I entered, the market was very bullish and I just jumped right in. The very next emotion was "Uh oh . . . this is the top, isn't it?". I didn't even both to see where I was and just jumped without looking. Then, I began praying. Thankfully God gave me grace, but if He didn't, it would've been deserved if it cost me.

2. On both exits, I did not follow my trading strategy and continued to have a poverty mindset to take profits too quickly. I took only 1 tick for each trade.

First Trade I got in @ 8:27 AM MST @ 1131.25. The trendline I had connecting 4:45 am MST and 6:03 am MST had the top being around 1132.75. My stop was originally @ 1131.75 before drawing the trendline.

Well, guess what happened? Not only did my revised stop @ 1131.50 get taken out, but it went to tag 1132.75, exactly where my trendline was and then came back down. Good trading would've done one of 2 things - had the stop at 1133 or 1132.50. The first was if it was going to overshoot, which sometimes it does. Often I will opt for bringing in the stop just slightly closer to be taken out and start over, if need be, just to capture some profits.

It's still great to have a profit, but these are areas of where I could improve. That allowed $50 to slip out of my hand and that was in a matter of 2-3 minutes. Profits on that trade could've been 5x than what it was.

Second Trade entry was at 9:15 am MST @ 1130.25. I originally wanted to get in at 1130.50, but I took too long to put the entry on so if I wanted in and still abiding by my trading strategy, I needed to get in. Better entries would've been at 1131 or 1130.75, but I think I was chatting with a friend on Facebook and missed it.

The 50 EMA & the 38.2% retracement was at 1129.75. One has to decide one of 2 things when you have only 1 contract on the table. Do I have a closer profit stop that is just 1 tick from the target or do I keep the profit stop out of the way in case it overshoots the target?

If you're paying attention and able to move quickly, keeping it out of the way is often better. My gut told me to do that, but some level of fear had me have my stop only 1 tick away to be taken out. Not only did my stop at 1130 get taken out, but it went on to tag the 61.8% retracement point exactly @ 1128, which is just below the 200 EMA. I missed 2 points. The reality is, I probably wouldn't have had the full 2 points, rather 1.5 points of it following my trading strategies EXITS, which is still great.

So, in these 2 trades, I missed out on 2.5 points, which equates to $125 missed opportunity by not following my trading strategies. So, January's net in 2 days of trading could've been 30% instead of the 5%. However, I'm excited that it is positive and my account is back to growing again.

3. Eliminate fears by following the trading strategies to the "T".

4. When trading, trade. Do not do other things. Focus.
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