Apr

10

Victor has always said, "don't get in over your head" and it may be interesting to note you can do this in more ways than one. The following is not the most obvious way to get unstuck. I'd classify it as rotting from the inside.

Recently while putting on a trade with suitable parameters, I executed a sell order and initiated the correct size for risk, however as the market ran, seeing an opportunity, I hit it again for some size with a very close protective stop which I immediately moved to scratch. The market kept moving my way over the next several days. Lovely. However at this stage my mind was busy executing other trades and unwittingly focused on mark to market net profit across the board. So when the market jammed without reaching my profit target for said trade, this caused undue attention to this trade and bad trading habits to creep in, like trying to manage a position which should never of been as mark to market open profits tumbled.

I learned my lesson: keep away from trades that could take away from your model focus (or at least keep them and the attached numbers very separate). It's a bit like a hoodoo/ gremlin entering your book. It initially promotes great things but then seizes on the opportunity once you're off guard and tries to destroy you. The focus has to be in "holding the line" and allowing for no errors or anything that promotes them.


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