1/5/12 Trade Results: 1 trade, $50 profit: New Year's Resolution

At the end of every trading day, you realize what you did wrong, what rules you didn't follow, and how to fix them. The problem is, seldom do these "solutions" become enacted quickly. At the end of the quarter or year, you recognize broader mistakes; for example being impatient or straying from your rules.

This year, I had 2 New Years Resolutions; one personal and one for trading (work). The one for trading was:

Be patient, disciplined, and smart.

Here is the solution (resolution) for each-

Be patient: Patiently wait for price to go into the "trade zones". Patiently wait for the entry signal. Never assume or anticipate anything.

Be disciplined: In 2011 I saw way too many times the situation of being in the money by $100+ and then getting stopped out at break even. I was giving back profits because of greed. For this, I developed Systematic Profit Securitization
Trade 1) +$50 target
Trade 2) +$75 target
Trade 3) +$100 target
Trade 4) 2 contracts, +$50 and +$150

This is an idea of a profit ladder. I will take $50 profit on the first trade of the day, and then progress the targets if I secure the previous target. I cannot step up to the next target level until the previous one is met. At the 4th trade, I trade 2 contracts scaled out. After consistency, I can leverage up to 2 contracts and double the levels.

Be smart: I want to start very slow this year and realize that I have all week to make my money, not just one day or 1 5 minute bar, etc. I want to be smart and put focus on price structure analysis, not firing off trades left and right in non trending environments. Today, I had 1 trade for the profit level of $50. Since the time is noon, I need to stop trading for the day no matter what, even if I had 0 trades.