Post 26 EWU Observations from a New Student

Hi Jody,

I have slowed down the pace of writing, obviously.

I’m in a whole different mode now. Over the last month, I have made a number of significant changes. I have changed my schedule so that I get up around 6 AM each morning and I now have two early morning hours carved out every workday, to manage my trading. That allows me to keep all of my trading work up to date and watch for setups before the day gets busy.

I’m still looking for paper setups on the Forex and looking to make real money trades in the stock market. Lately, the stock market has been in a transition and I’m waiting for confirmation to go short; however, that is taking a long time to manifest. I thought the rally in the S&P was a corrective wave up, but we went up to make another new high. I’ve had to be very patient as I got out early in the advance up from Feb 5th and now am playing a waiting game.

I’m still looking exclusively for BO-3 trades on the smaller time frame once the larger time frame confirms a trend is either changing or is established. I rewrote my Trade Plan again, recently. Once I came back from the road trip, I realized that there were parts of the Trade Plan that were not spelled out in enough detail. The mechanics of the entry and exit were clear but the more general setup required on the larger time frames was not worded clearly enough. It made sense when I wrote it, but after getting some distance, I realized that there was some wording that was confusing. I don’t need confusing!

My whole organization plan is well in place, now. I’m still playing a bit of catch-up on a few miscellaneous items (like contingency planning..which seems a bit of overkill at this point), but the most important parts are established. I make it a point to do my organization work first, in the first hour of the day. It is still a full hour of the two hours that I set aside each morning and I assume over time, I’ll become more efficient. (This includes things like logging my paper trades in a spreadsheet, making sure I have well-annotated screen shots of the trades, typing up what I call “Journal Entries” which are my stream-of-consciousness while in a trade, logging my time sheet entries into a spreadsheet, organizing trading related emails, reviewing my recent notebook entries, filing…the really mundane stuff).

Not only is it a load off my mind to have this stuff where I need it, but now that I am in the habit of “putting things into their rightful places” on a daily basis, it is very clear when I did a sloppy job or missed an important piece of information that makes a part of my analysis unclear. This has a tendency to make me more mindful today as I study a potential setup that I need to leave a very clear record of my thinking, so I don’t have the same problem tomorrow. So, it is making me more conscientious.

The strange thing is that I can feel that this long wait for a good setup is causing a bit of second-guessing. Am I really going to be able to trade this properly when the trend changes? I feel a bit out of practice.

Some time back, I figured that it would probably take me through the end of March before I really felt comfortable in my own skin as a trader. That time frame still seems appropriate. I think at that time, I’ll be in a position to perhaps make really good use of some professional coaching.

-dave

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