Monday, May 18, 2009

5/15
I entered into several positions today. I'm trying to be disclipined about journaling and logging my trades, so that I can continue to be better about risk management.

It takes time to write these blogs with my busy work schedule, but I think it is important for me write these entries. It forces me to write down whey I entered into positions and what are my adjustment points. 

Entering into a trade is easy. The hard work begins after you enter a trade. This involves monitoring the trade. Since I don't want to watch it continously, I set alerts with my broker to notify me when the underlying is trading near the break even points or if the spread is trading near the loss target.

If you're reading this you should develop the routine and habit of writing the reasons why you entered a trade, and more importantly at what point will you make adjustments if the trade goes againist you. I've found that I do that but don't always act when the underlying is trading againist. I'm afraid to loose money, but my failure to act causes my losses to increase. This is where emotions come into play. Emotions in trading is deadly.




0 comments: