In day trading, good execution is paramount!

One thing about posting your results is that it can be rather embarrassing when you screw up.

Today I did just that.  I have been doing some research using a shorter chart time period than I normally use, and when I saw a signal develop in that time frame today – I jumped in! That was a disgusting lack of discipline and I was punished as only the market can punish you. A quick loss of 18.4 points in just under 2 minutes. (4 contracts sold at an average price of 916.9 and bought back at 921.5)

It is not the fact that I lost which concerns me – as I’ve said many times before, losing is part of this business. The trader’s job is to minimize the losses, they cannot be totally eliminated. No, what upsets me is that I allowed myself to deviate from my trading rules… 

Still, there is not much time in day trading for self recrimination. You have to take it on the chin, and get right on with the job. Time enough after the session is over (like now) to rebuke yourself and swear not to violate your system again. Meanwhile there is work to be done.

Within 15 minutes, a genuine signal developed and (with some trepidation) I entered another short trade. Fortunately that one worked out OK and led to a gain of 23.1 points after just a tad under 10 minutes. (3 contracts sold at an average price of 916.2 and bought back at 908.5).

The net result for the day was +4.7 points (less commissions) with a market exposure around 12 minutes. Certainly not an outstanding result, but at least it was in the black, which is  better than I deserved.

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I received an email from a reader asking why I refer to wins and losses in points and how points relate to dollars. Well, in the grain markets, one point is USD50.

I prefer to think about wins and losses in terms of points because, for some strange reason, it triggers less emotion than counting the dollars.  A lot of trading is psychological, and this is one little trick which helps me to trade consistently. Irrational, but there you are.

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