I was trying to figure out the best way to deal with my losses. And I see this photo on Trader-X’s blog. Darn! This is what I am looking for.

[photopress:yankeesSuckKid.jpg,full,centered]

This is the business we have chosen ~ The GodFather, the movie

Dear diary,

Another losing day for me.
“OK, I am going to shut down this blog, stop trading, slam my computer, close my trading account, go to look for a job at McDonald since it is operating 24-hours a day now in Singapore.” 😆

Cut the BS..Well, the feeling sucks, when having a string of losses. But nothing really serious. Before blaming the market, I look at the chart again. Yesterday’s loss apparently was my mistake. Thanks Vincent for reminding me about my stop level. Who would put the stop loss level right at the last high? That’s me. And I was well prepared and highly qualified….to be whipsawed to dealth.

I was looking at currency market yesterday since I got a little extra time before cash market opened. Instead of trading during normal U.S cash market hours, better opportunities were found around 6am to 9am (NY time). This is something I will have to consider (basically, it means, I will be rushing home as earlier as possible).

I am pretty lucky to have learnt some money management ideas, and having a pretty good start of August. You will only feel the importance of controling your trading risk and capital protection when you are having a series of losses.

Time to have my coffee. Let’s fight another day.

Dear diary,

Another losing day of the week.
I thought I am going to write a chunk of stuffs to express my frustration, but after getting some sleep, I forget about what really made me so frustrated. 😆
(Remember, my ‘Two losess in row, walk away for good’ rule)

There was no problem with trade execution. Everything was done as planned. And I was stopped out as planned as well. Though the Rs are relatively small, it made me think of 2 possible improvements I can make to my trading.

• Though yesterday I mentioned the opening volume analysis suggested by John Carter, I have yet to add it into my ‘must do’ list. And, again, it seemed to be proving itself yesterday. From the chart available to me, the first 6 bars in 5-min charts were trading below 10,000 contracts. I would be watching it closely for another week.
• Instead of trading E-mini S&P(ES) and mini-sized Dow (YM) at the same time, I will be trading only one of them with bigger position size.This is not an improvement of the system, I am just seeking a easier way to manage my trades. Most of time, if not everytime, ES and YM are moving in a highly similar fashion.

So far, dummy trading yields positive expectancy and profit for me. However, I am looking for another or couple of setups to fill my trading tool box. Is it possible to make a living by trading only one setup? I know the answer, do you?

To keep track of the effectiveness of my stop loss, I decided to record down the market direction at the end of the day after I got stopped out.

E-mini S&P : Long stopped, market down. Correctly stopped.
Mini-sized Dow: Long stopped, market down. Correctly stoped