I’ve spend the better part of this year working to find the products and indicators which correspond to my trading style. The books I read profess all sorts of strategies, techniques, psychology, and speak of discipline. One of the purposes of this blog has been to keep a journal, of sorts, adding at least one element of discipline to my routine.
I recently reviewed my successes and failures from a financial perspective. I mention “scattered” because scattered distraction has been my personal sand trap. I dabbled early with equities and day trading, even though options were by far my preference, I stumbled on some irresistable futures swing trades which swung the wrong way, I spent a large amount of time digging into large option trades and researching option pricing, I worked hard with vertical, calendar, butterfly, condor and spread adjustment strategies.
I’d expected that a decision to continue or to stop this adventure would be self-evident, I’d have lost money or made money and the distance along this curve would represent conviction. I was half right. In the end, I’ve made money and I am reassured, but I’m not far enough along that conviction curve. The surprising thing is that it felt as if I lost money, I saw more failures than successes. Obviously, you enter trades with conviction. My successes were fortunately larger, which is critical, but what I didn’t expect was that psychologically, loss after loss, against fewer wins left me surprisingly unsure.
I found that I enjoy trading the SPY options, the ES_F, and even the CAC40 futures. In the end, I lost money on equities and made money with my options and futures trades. I was most successful trading options, but worked harder on these. I’ll continue this year with options and futures, but leave the equities behind.
Discipline and Structure are going to be the keywords. Thinking like Calvin, considered them entered into my mission statement… I’m going to spend more time with the charts this year and I’m going to work on letting the market move into my trade. I wrote about the EUR.USD yesterday here, this might be a good way to kick things off.
Good Trading, it’s been an interesting day, already!