Jun 27 2009
I don’t think I know what I am doing
I got stopped out of SDS today at $56.44.
I was one penny away from stopping out of my XLF puts.
I am starting to believe that I have no idea what I am doing. It seems like my trading comes in 3 cycles…
1. Get stopped out on every trade.
2. Abandon stop losses and trade well.
3. Get over confident and get blown up on one trade.
I almost always pick horrible entries such that I almost always negative within the first 15 minutes. In stage 1, I get stopped out. In stage 2, I suffer moderate sized losses before making it all back and more. In stage 3, my moderate losses blow up and I return to stage 1.
We’ll see what happens with my XLF puts, but there’s no way I am adding new positions next week, especially when everyone is going on vacation before July 4th and when trading is super thin. Absolutely nothing I am doing is working. The only good news is that my losses are small because I am a big fat chicken in stage 1. I am going to have to think things through. Apparently a 3 week break from trading didn’t do the trick, especially when I was either busy or relaxing, but I wasn’t thinking things through.