Ok, today was very interesting. It was the second day of the 4 trade rule that I have implemented. If I reach 4 trades during a day, I stop trading no matter what. Unfortunately for a day like today, I should have still traded, BUT this 4 trade rule teach EXTREME discipline. Do you know how hard it is to turn the screens off knowing you're missing big profit trades because of you're stupid rule? All the trades that you can't get into because you've reached your max trades for the day? It sucks, but it's great! Think about it, you ration your trades to only take the highest of quality positions. You learn discipline, discipline, and more discipline. Also, patience that is acquired through this will be your most valuable asset in trading. So, as much as I'm mad that I had to stop the day at 4 trades, I'm thankful that I have learned discipline and patience. Here is the performance report for today.
I also wanted to show you the price structure that I was seeing today. It gave me a short bias, therefore allowing long signals to go by. I was somewhat disappointed with that last trade. I moved my target from 10 points down to 6 points for no reason. I had no indication to exit the position. This was one of those emotional moments that all traders have. The fear of giving back profits and just exiting. It's something that I'm working on and hopefully can be more systematic with.
Here is how the stop would be managed systematically:
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