The first thing I think about today after my trading session is the phrase ‘choose thy weapon’!!! For those reading, you’re probably thinking that I lost the plot but bear with me.

Today was another disastrous day but it wasn’t my discipline and trading to blame.

Trading is like going to war, you’re fighting to claim your piece and it’s important that whatever weapon you use (in a war) that you know how to use it and know it’s limitations.

When I say weapon, in terms of trading, I am talking about the trading platform. I had been happily playing with the trading simulator all these months and honing in on my trading skills. However, though I am still using the same platform for live trading, there are now limitations on my account which I was not aware of.  I was long in the market and had a 2 shorts below (one short was the stop and the other short was to open the trade on the downside.. i.e. a stop and reverse trade).

However, since my account had a limitation of only one open order at any one time and no more than two open orders (usually the limit order and stop order), I found that I was unable to close out my long for a profit. I tried this 5 times and was starting to very frustrated as I saw my profit was becoming a loss as the market crashed towards the downside.

I immediately received a call from my trading mentor (he must have been watching my account) and he asked me what I was doing.. I told him that I was trying to close my trade for a profit (which was now a loss). He explained to me what was happening and by this time the stop and reverse hit. The reverse was a bear trap and I got caught out… as I was still speaking to my trading mentor, I hit my trading limit and beyond for -24 prices.

I am now about 40 prices down on my live account.. oops! That’s a lot of catching up to do and I must not let this affect me. Anyway, it was a lesson learnt..  for those trading and learning to trade like myself, know your trading platform inside out and know if there are any limitations before you go and risk your money in the high risk world of trading.

Oh tomorrow, we have our company Xmas do so I won’t be trading.

Anyway, it was also a very choppy day so not very good for trading anyway…

* In hindsight!!

Yes, it’s true.. when you look back on charts you think to yourself.. wow, the charts did this and I would have entered here and exited here. It was obvious as the stochastics turned right at my entry and once again when I exited.

However, when trading live and watching the markets bounce around, it isn’t as easy as you think to pull it off. The indicators are lagging so they do not form until after the move.

Then you have your trading psychology to deal with and this determines if you’ve been winning or losing for the day already. There are a lot of unforeseen variables when you trade live. It’s all good and well having charts to look back on and thinking that you would have made a killing.. believe me, it’s not that easy when there’s real money on the line.

Anyway, I was out last night (some Xmas celebrations with friends) and didn’t trade. I have looked back on the charts and I have identified regions where I think I would have entered. A short position just under 148000… I am not sure where I would have taken profit but I would have move the stopped to entry shortly after the move down.

And then as the stochastics turned, I would have liked to think that I would have entered long above 148000.

Remember what I said though, it’s easy in hindsight but I don’t know if I would have done this in the live environment!