Tuesday, March 17, 2009

March 17, 2009 Tuesday Reflections on the Day

I was looking at my PNL report for the current month and realized, I f'd up pretty bad today. My greatest winning day was only about $433 on a daily basis for the entire month but today I got a -$799 drawdown. Guess why? I mis-allocated my contract size and traded 2x or 4x normal size for counter trend that I usually do AND did that at lunchtime, when traders are away eating lunch and there is less trading volume (usually). I did two shorts during lunchtime of 2 contracts then 4 contracts (see my journal for trades #4,5 for today). That is an additional 4 contracts that should never have been traded at all according to my rules (which accounts for -$500 in the day's drawdown). I should have done 1 contract and 1 contract for the short plays (which were misguided trades to begin with hehe). Granted I was mostly trading short against a trend day (a day which opens near the lows and closes near the highs of a long daily bar) which never works well. It is obvious now what sort of day it ended up being but around noon Chicago time it was still not obvious (to me at least) yet. As you can see my performance this month is pretty consistent, with no losses until today. I think I was overdue for a losing day but only -$300 to -$500 would have been acceptable. Here is my PNL report up until now from NinjaTrader(TM) assuming a $4.80 per round turn commission rate:
March 1 - 17 PNL Report