Today I slept a bit late – and had an appointment with the dealership to take my car in for service early afternoon. So it is going to be s short day of trading. I sat down at my computer and right off the bat got off on the wrong foot – I was looking for a trade – rather than waiting for a trade. Backing up a moment, I wanted to be long the 10 year bond later today. I was convinced that Bernanke’s speech late afternoon would send this market higher and I wanted some of that action. Well, I made mistakes that I shouldn’t have made – I traded like a rank amateur.

Just yesterday I posted a blog about the importance of having a trading system – and most importantly following that system! Well, I should have read that post early this morning because I forgot most of my own advice! I took marginal long trades when my own system indicated less than favorable conditions for going long. Screwing up once was not enough – I did it a second time. And both times I got stopped out with a small loss. I have lost much more in a day, but this one really hurt for three reasons;

1. I have written articles on having the patience to wait for a good trade to come to you – rather than chasing a trade.

2. Each trade was very marginal – should not have been made according to my own trading system.

3. At the end of the day, the salt was rubbed into my wounds when the market did exactly what I had expected – went significantly higher after Bernanke’s speech.

One more time! It is not good enough to have a good system – you have to follow it!

I do not like to lose under any circumstances – but when I virtually give money away due to negligence and/or stupidity – it really pisses me off. And today was one of those days!

Oh well, tomorrow is another day – and at least I know it was me – not my system- that cost me the money!

 

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