Friday, September 28, 2007


After I made that complete trading plan I waited until after hours so I can start finding stock setups for Monday and I quickly started noticing something. Once I got down to the 3 stocks I liked out of 80 or so, I realized that I setup high expectations for the stocks. I didn't notice it until tonight. That would probably explain why I've been on so such a crazy losing streak. When it comes time to look for entry points, I'm so focused on my target and exit prices that I can't objectively see the market as it's happening and I'm missing the true opportunities as they're unfolding.


I should be able to keep a plan, but adapt to the new situations, which I can't do. Paralysis by analysis. Before I'd wake up not knowing what I was going to be trading that day. I'd have a real time scanner going picking up opportunities and since I didn't have any expectations that morning I could easily and objectively spot opportunity after opportunity and take them as they happened without fear. Once I got in I immediately put in a stop and let the stock unfold.


The thing I didn't do however was get in using an edge or something that would help with identifying good entry and exit points. I kind of winged it so to speak. That's when I started looking to setup a plan to find stocks the day before, which now I've tried, I can't do. I just can't focus on the market when I do that. I wake up with all these expectations of how my stock should unfold but when it goes against me I don't mind, I know it's part of the business. My problem though is I can't identify the true opportunities like I can when I wake up with no expectations.


So, I'm kind of in a weird mental state right now. I'm going to spend all next week with no expectations of winning. I'll scan the market, if an opportunity comes up in real time, I'll pull up the chart and see if I can spot an entry using a 9 and 21 day EMA setup. I'll get in if I can, set my stop and let it unfold. If the stock starts providing profits then I'll look to start raising my stop to break even then eventually raising it capture profits.


Only down side is. I don't have the necessary requirements to day trade. So I'll only be making 3 full trades at the most a week. Which is nothing, but it'll be a start to test my mental state in this new modified environment.

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