I was minding my business scrolling my fintwit feed this past weekend and I saw a post from one of my favorite follows ( @RickyAnalog ) title that stood out to me which was titled “Lose More Often, Make More Money (Yes, I’m Serious)” and in this video, which I will link below He goes into how making money in a trade isn’t always a good thing. This is very informative and if you’re reading this I can promise it’s worth listening to…seriously.
Often you hear people say that green is good”, but that’s not always the case. As @RickyAnalog states in the video “The Process is what matters and the outcome is not”. Reviewing and solidifying your process has to be of top priority to me. This is the crux of my trading and if I’m serious I MUST continue to hone and refine it.
Every day is another step and the power of what Ricky talks about in regards to losing more often to make more will be evident in my trade I talk about below. By having that calculated risk that I’ve been talking about I have found that the anxious feeling is mostly removed (I mean you still want to know if it works or not, but it’s different than that nauseous “what did I just do” feeling) taken out of it and you are able to think clearly.
Oddly enough @P3Trader made a comment last night in response to my last post that really struck home with me and added a dimension to my thinking process, which I had never really thought about actively paying attention to.
Being able to assign and catalog your emotional response to certain situations is a fantastic way to help remind yourself of WHY you need to stick to your system.
I was mentioning in the IU lounge on this past monday when people were trying to force trades on $ABUS that literally every single big loss I’ve had has come from me having way too much size at the bottom of a sideways move where there is 0 and I mean 0 edge, then getting shell shocked when it moved against me. That feeling is the WORST! I mean the absolute PITS! I don’t know if everyone has felt it, but it seriously is not something that I ever want to experience again. The last time that it happened my wife ended up writing me a letter after I lost a nice used car in a trade (IYKYK), which I framed and am very grateful for, to help me put things back in context.
I can’t think of a worse feeling trading than being in that YOLO mode and watching what could’ve been a manageable loss turn into a volcano of stress followed by rain drops of misery. THAT is a situation that I don’t want to be in, so my goal is to have calculated risks and to stop out more often and when the move comes it’s of greater stature than the lesser chops and I’m not so frazzled that I’m nervous to take the trade.
So I work on my process. This new process has kept me from chasing names because I have very specific criteria to be met for entry and EVEN if there is a TON of meat on the bone on the move (like $OMER today…sigh) I’m not touching it unless it gives me what I want to see….end of story. It’s all fun and games when it works, but then that one time the chase doesn’t work and you get upside down you go into tilt mode, and if I think about the emotional weight that comes with it, it’s just not worth it. There will ALWAYS be another trade, which fits in your wheelhouse to keep you in control.
As a reminder here are some charts from in the past of $OCGN where I chased and got pimp smacked. #NeverForget
$OCGN – 12/23/2020
$OCGN – 2/12/2021
Ok, with those painful reminders out of the way let’s move into the days trade. No missed trades because nothing fell into my criteria even thought I REALLLLLLLLLLY wanted $OMER to give me an opportunity, but again if I had chased it could’ve ended up like those $OCGN charts above and I’m good on that.
Trades
$PHUN
I’m happy and disappointed in this one to TBH. I’m happy about the fact that I entered and kept my risk all the way in check twice. Neither of them were a full R and I was perfectly good with it, however it was avoidable if I had just waited for my confirmation that I am supposed to be looking for. On the plus side I saw the refresh seller come back at in the 90’s and ended up with a position size with a 3.96 avg and then as you can see I just let it work back down to my targets.
I was hoping that it would test ted, but I wasn’t going to to risk my enter position on it, so I sized out based on price action and let some work and when it felt like it might try to sneak back I covered a little bit more ( pretty close to LOD’s) and then left a small flyer on with a stop range so if we tested red I would be there in practice, but without the stress.
This ended up being a near 2R (after covering for the hits win despite the stop outs and I think this is the fact that @RickyAnalog was getting at. You can be right by being wrong. I didn’t get emotionally attached because my risk was in check and when the actual move came in I was able to let the trade work and end up with a positive result because the process was followed (well almost outside of the early entry…lol).
Wow this recap hit home my biggest loss of 2021 was on OCGN haven’t traded it since and will never trade again. I wasn’t home today and have a tendency of trading on my phone I saw OMER and had FOMO to avoid doing something stupid and chasing as you mentioned above I got 2 puts on it as leave I feed the FOMO and risk was measured at least I was able to control the emotions of getting in and it reversing and not being able to manage on the phone. I’m trying to have that set criteria that you mention but not quit there yet but good to hear you say it need these constant reminders. Keep the recaps coming thank you
yeah the way I piled in on OCGN in BOTH scenarious at the bottom and got ripped still leaves a sour taste in my mouth.
Let me know if you need a hand figuring out your criteria or just some suggestions to get you going.
Great to see you back on recap, keep at it, brother. Gonna hit up via text. Need your input on something. Haven’t been able to trade due to new work. Hope you can give advice on how to manage trading and work.