For the past few weeks I've been pretty vocal about the panic in the energy trade. This week, I've been proven quite wrong, at least for my trading timeframe. Attempts at stabilization in the group completely shit the bed.
I want to share what I do when I get a thesis like that wrong.
Look, i'm an egotistical guy, so it takes some retrospection to clear my head. Here's the jist of my head clearing process.
1) Get away from the charts - Take 24 hours away. If I have other positions on, I set stops into my trading platforms.
2) Go over previously written notes and plan (if you don't already do that - do it). What did I do well? could I have done better? - Review again in 2 weeks.
3) In that day off, get my sweat on 2-3x. The gym, a jog, the sauna etc. Clear it all out. It's easy to meditate in the steam room.
4) Watch a stupid comedy on Netflix. After all that thinking, it's nice to flush it all out with laughter. It's a nice reminder that life goes on and everything is ok.
5) Get back into charts and news aggressively one or two days later.
Why do I do this? To avoid 'revenge trades'. It's always tempting to make a big bet after you've had a notable loss. Compounding losses kill returns.
Yes, you can quickly take the market and trade it the other way. If you can do that, that's awesome. It can pay handsomely.
Trade 'em well!
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