Home > Beginner education > $Debbie: End of Month Reflections

$Debbie: End of Month Reflections

October has been a strange month for me in my development as a developing professional trader. As I look through all of my notes that I take throught various trading days and at the start or end of each day, I see someone who has progressed tremendously (of which I am proud) and one who catipults from moments of confidence and knowing to moments of utter confusion and wondering if I know anything.
After much reflection, I have decided that part of this business is embracing those two conflicting moments and accepting that confidence and knowing what one knows will be juxtipositioned with a feeling of not knowing and a lack of confidence because in an everchanging environment (such as the market) one has to become very comfortable with sudden, quick, and sometimes drastic changes that can happen instataneously.
Part of embracing and accepting the juxtiposition mentioned here is the ability to immediately replace that feeling of not knowing and lack of confidence, when it arises, with a specific strategy to turn it back to knowing and being confident. There are three things that I have learned to say to myself and act upon to achieve this.
1. What is happening right now and has something changed?
2. Who has control right now? The answer is always me.
3. What are the if this then……that…scenarios I have in my toolbox that fit this situation.

Number 3 needs a bit of explanation. In my plan I have many if/then scenarios that I use at a seconds notice. A few are below:


1. If the tick does ________________then I will____________.
2. If the vix does ______________then I will ______________.
3. If one or more of my time frames show indications of a change of order flow then I will______.
4. If the SPY does__________________then I will______________.
The point is the more if/then scenarios one has the more control one has and ultimately the more confidence one will have.
Another thing that I have been reminded of this month is it is very important to test one’s trading idea, when set ups and signals arise, with small share size and tight stop loss perameters. On Friday, for example, I placed 6 trades and took several flats on positions and one small loss until my idea played out in a big way. I did this by doing the following:
1. I focused on my “pet” stock JPM which I know very well because it did an OR breakdown and followed through. Basically, it was doing what it should. Although I did deviate to another stock when it did not follow through I kicked it out and immediatly returned to JPM and then told myself I will not even look back.
2. I got into JPM a few times before I actually got the position I really wanted. I entered and re-entered several times. When doing this I took small gains and flats so that I managed risk.
3. When all things lined up (tick, vix, SPY, Price Action All Time Frames) I took, without hesitation, an aggressive position (now I wish I had been more aggressive but that’s another post).
4. I kept telling myself that as long as my criteria were being met then I was staying in the position. The only thing that I made sure of was to book enough profit early enough so that I would, at worst, be +2 on the trading day and my expenses would be covered. After that was achieved then I booked profit all the way down at significant support levels until I was holding my last piece (100 shares). That 100 shares I told myself I would hold until I was either stopped out (+5) or I could identify that conditiuons may be slowing or changing. With this 100 shares I was able to capture almost the entire move.
5. When I booked the profit on that last 100 shares, I called it a day. I have learned that lately, in the afternoons, when there is a good move in the morning or mid day, the market slows down and then price action in the stocks that moved with the market also slow down. I made a decision that I would not risk a cent trying to make a few more pennies.
Profitable Trading All!
  1. robert c
    October 31, 2009 at 11:02 am

    Excellent post Debbie… Well done!

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