Last Updated on August 26, 2021 by Oddmund Groette
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 day trading:
- After the open, I make sure my Excel program is 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 detach 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 the 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 close positions early on good days, where the P/L gets better as the day moves on.