It has been awhile since I had a day with two stop-outs and no more trades. At first I chocked it up to a series of Trader Psyches biz things that went our way in the last 24 – a known hedge fund called for consulting, a big broker offered to market our workshop, a big finance organization offered to post our July 15th talk – it was a good 24.
But now I realize, it wasn’t those things. Oh they may have helped but the One Cocky Feeling was actually much more trading related. This morning I deposited a check from my June trading…and it wasn’t any old check. My SO Bill had commented the other day when he saw it laying near the outgoing to-do pile, “WOW is that your June trading?” … and Bill can be a bit like Mikey from the old cereal commercial (you know, “Wow Mikey likes it!”) … so actually I now realize that what I was feeling as I took a little too much risk on the first trade was that I wanted more of that feeling – the feeling of impressing someone not that impressionable.
So I write for two reasons – one, it is my way of working it out (as I recommend for everyone) and two, as an object lesson in double-checking the exact state of one’s psychological capital before they take a trade. In my case, the bucket was TOO full and almost more importantly I didn’t realize that I was wanting something in particular – something having nothing to do with trading. It is fun to impress a former fed economist who also trades options – one whom you also happen to think is the smartest guy you have ever met.
And that clearly is a truly lousy trade set-up. Truly lousy.
Now about that second stop out…