Had a painful day today. Have had a great run with CGM, MAD but took a nasty hit today on IVR. Maybe I got too cocky, didn't forget the rules but had the wrong approach.
Had planned to take trade on IVR once it moved above .345, assuming a movt back up was on the cards, bought in at .35 this morn. Unfortunately vol did not carry thru and a big dump happened. I sold at .29, not "panic" sell but just didn't like the action. My thinking brain tells me I did the right thing but emotionally/psychologically its hard to deal with. Trying to remember all the rules but thought I'd followed OK, however, waited too long to exit. Stop was .32 but didn't execute, expected a bounce.
Over weekend re-read Phantom of the Pits - might have to adopt his ideas, in order to survive. He says trading is a losing game and you should take a position with the expectation of being wrong - unless the market proves we are correct, then if you are you press your position relentlessly. Its a bit of a fine line, but now I understand what he's getting at.
I went into my position thinking I was correct and I waited until the market proved I was wrong - rather than getting out quickly.
