To Avoid Second Guessing
|April 21, 2017||Posted by Oddmund Grotte under daytrading, trading topics|
My previous post on how I screw up by second guessing my strategies made me change my trading habits (for the better). I have taken two actions for my daytrading:
- After the open I make sure my Excel program are running (I enter positions completely automatically). Then I go outside to walk my dog or simply have a cup of coffee. After 30 mins I return and have a second look.
- After 2 hours of trading I close all my positions.
Results have improved and it also feels a lot better. This is much more relaxing. To look at P/L through the day is detrimental to both consistency and health, at least for me. It’s extremely hard to disconnect from money.
It does not matter when I close my positions. Just being consistent is the most important thing! If I close at 1300 NY time, at 1500 or at close – it does not matter. Simply being consistent is what matters. The reason is that I tend to hold positions on bad days (hoping for it to turn around) but closing positions early on good days, where the P/L gets better as day moves on.