I was writing this before the close because I stopped trading and I walked out to clear my head. After I came back and saw how FB and GRPN traded into the close I am very upset with the way I handled my trading today. Both stocks traded right to my target but I was stopped out of both. My goal for this week was to get the confidence in adding size and I think I did that very well, especially today putting on max size in three stocks. Being able to tolerate the risk associated with that is a big step for me and something I’m really working on. However, my trading today revealed another area that is equally as important as sizing and maybe even more so. Yeah, I got stopped out of my trade but both stocks gave me opportunities to buy back but at that point my conviction had taken a hit so I didn’t take them. I think this is unacceptable. Was there a fundamental change in the reason I originally took the trade? No. Then I need to still be looking for places to re-enter. That first time I get stopped out doesn’t mean I’m wrong, just that its not ready yet. Getting into this mentality is going to be my top priority next week.
Ok (trader’s name deleted) lots of good stuff here:
- I really liked your thoughts
- Your mindset is outstanding
- Great job adding size today
- Big step forward in feeling more comfortable with the new size
- Great job understanding there are times to get back in and starting that conversation with your trading brain about when to get back in. So you have a PlayBook and then with these plays there is what to do when you get stopped out but you still see the good risk/reward
There is no right answer or math formula about when to get back in. There is each trader’s individual quest to determine when they should get back in on each play in their PlayBook. Stopped out is not the end of the trade. The first step is to identify your need to get better at getting back in. Now, with screen time and thought about when to get back in, along with talking to others on the desk about it and experimenting with certain trades for yourself, you will create a better PlayBook for yourself.
no relevant positions