Trading Journal
“First learn to trade then the money will follow!”
UAL TRADE
20 October 2023 at 23.48pm
Beyond expectations, the US 10 Year Yield continued to rally, taking out the topping tail. And the DXY has not declined greatly as expected.
As a result, UAL’s price has continued to decline. I could have exited the trade when the price was just above my stop loss level (with a $3 loss), but there was still a possibility that the DXY would decline today. This would have created the possibility of the UAL price rallying upwards as expected. Therefore, I decided to be disciplined and remain in the trade.
This is because trading is about being able to be unemotional and take loses unemotionally. Therefore, I am using this trade to practice developing this temperament. But, let me be honest. I currently hate the idea of losing or taking any loses on my trading account. Which is even more the reason why experiencing a lose with this trade may be beneficially for me in the long-term.
I still need to enhance my ability to be emotionally detached when trading if I intend to arrive at my desired destination. In this respect, I can now better appreciate why keeping a trading diary will be essential in this regard.
As shown above, the price of UAL appears to have declined to such an extent that it has hit my stop loss on the grey line.
Learning Point
- Very important that when I make entries into these trades, I really understand that there is still a 30% chance that they will not go according to plan. Therefore, continue to be very conservative with the amount of capital that I choose to allocate to any trade, thinking worse case scenario.
- Complete the trading journal as a form of continuous training to ensure that I become as emotionless and detached as possible when trading.
- Complete the trading journal and spreadsheet as a very important part of building the necessary competence to develop and manage Involgize Capital.
Next Action
- Complete trading spreadsheet with the latest loss.
- Continue to assess the US 10-Year Yield, and the DXY everyday in order to assess the Hershey Co and LLY trade.
- Assess the Gold price to determine whether it is time to take some profits off the table.
- Watch Gareth Soloway’s latest video.
- Start new trading book: “Way of the Trader”
IVG (Involgize)