I decided to take the blog in a different direction going forward for now. I realized that the in depth analysis I do for each of my trades has served its purpose and laid the foundation for me. But now it is starting to become detrimental due to the big focus it puts on my trading. What I mean by that is instead of just going with the process of the trades - it made me focus on the results and thus care more about the money. All the lessons I have at the end of each day are pretty much the same and the same things afflicted me today as well. Going forward I will just put a brief summary of what could have been better and that is it. Doing all this work after the market closes is leading to burnout both mentally and helping lead to emotional burnout. Staring at charts isn't going to help me anymore. My ideas are ok and risk management is good (too good)- sure they can get better but it's good enough. It's just the psychology that is affecting me - not the lack of setups or whatever.
Therefore, here are some overall themes I should be focused on with trading.
1. You need to be cautiously reckless - risk management tied with sizing in appropriately. If you want this to be your sole income you need to make money. My ideas are solid enough where I am confident with them and sizing up a little bit and seeing what happens. SIZE INTO THE BEST!
2. No what ifs!! - This affected you today and has affected you for a while.You cannot be afraid of losing money which is where these what ifs stem from. Detach yourself from the money and don't give a fuck. As you size up you will be taking more risk but that is the only way to learn and grow.
3. Give things enough room to work. Add higher/lower if need be and if within risk parameters.
4. Thesis > minute price action
5. Don't stop out of the initial size when the initial position's stop hasn't been triggered.
6. YOU CAN'T PREDICT EVERYTHING AND YOU WILL HAVE LOSERS! YOU WILL HAVE SOME SMALL-MEDIUM LOSSES AND THAT IS FINE! YOUR WINNERS WILL PAY FOR EVERYTHING AND MORE IF YOU SIZE UP!
7. Just because something similar happened in another stock in a different scenario doesn't mean it means the same thing again in this new scenario.
8. Be patient on entry and exit. But don't take this to the extreme and wait for the super-duper best setup you can have ultra low risk on. A lot of the time you may not get what you want exactly (like a pop right next to vwap) but it will be close and if you like the setup then just fucking take it and give it the room. You're not going to get the top and bottom of a stock so stop worrying about it and making yourself have all these decisions that lead to burnout.
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Overall things for mindset to avoid emotional burnout:
1. Positive self-talk. You are a trader trying to trade well. That is extremely hard to do so don't get hard on yourself for fuckups. At least you are trying.
2. Reframing the situation.
3. Don't obsess over the money. No need for money = no expectations = no frustration.
YOU MUST HAVE THE DISCIPLINE TO GO THROUGH WITH WHAT IS MENTIONED ABOVE OR YOU WILL FACE THE PAIN OF REGRET/DISAPPOINTMENT.
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