Watchlist: ITW ABB RSH XL VMED SNH VVUS ASML PG LVS BX ERTS
With this simple paper trading plan, I’m not having to deal yet very much with emotions. I feel a little anxiety following my entry rules 100% of the time because I know the chart many times is looking like a questionable set-up for a long or short entry even though it its breaking through the opening range, and I’m getting entry signal for this temporary practice regime.
But the plan is so basic that I can do it on auto pilot just after three days, so that is good, and is where I need to get eventually with a more complicated trading set of rules. Plus it is not real money, of course. So right now, my big challenge is in the area of mental (attention, focus, taking care of details, etc.) discipline rather than emotional. I think when I make my rules more complicated, and I get more invested in the results, the emotional stuff will surface a little again even with paper trading.
Oh, it does suck losing money paper trading every day so far, through. This simple strategy right now is too blunt and will only work on a full trend day with very little chop. In the next week or so, I will make my entry and exit more complex with some discretionary-based decisions.
Here’s a report on my trading consistency in terms of behavior on 8 trades (6 losers, 2 winners) from today:
1) Orders: 100% ~ no errors all were market orders at 100 shares.
2) Entries: 100% ~ longed all ORH-BOs and shorted all ORL-BDs, no hesi-trading.
3) Stops: 87.5% – put stops in all positions but made a math error on one so put myself at high exposure to loss that was realized.
4) Exits: 100% – did not manually over-ride stops or take profits even though the charts were calling for it.
Will be back tomorrow, but I think I may have to trade the afternoon rather than opening bell depending if I get some work projects done.
