Sometimes your trading rules are frustrating…

I did not trade again in today’s session. So far this week, I’ve only had the one trade. Proof positive that day trading is not "more trading".

As it happens, I watched the market longer than I usually do today because I felt it was building for a break to the downside. Sure enough, the break came after about ninety minutes.

Unfortunately, the break didn’t quite form the chart pattern I was looking for, so I missed the opportunity. This was frustrating as the trade was an easy winner.

However, experience tells me that if I do jump in on an incomplete pattern, the odds are not with me in the long run.

About 2 minutes after the initial break, one of my preferred chart patterns was completed – but I didn’t take that one either. The reason was that the profit/risk ratio (after taking expected slippage into account) was less than one. This trade would have been a winner as well.

So, despite my intuition about the market action being spot on, my trading rules held me out of two profitable trades. That’s frustrating! All I can say is that either you have a system, or you don’t.  Tomorrow is another day, and the market will present new opportunities. 

Consistent success requires consistent trading.  

Comments are closed.