No preparation = bad

So my day today perfectly illustrates why psychology is important to trading.

I’ve had a couple of ok weeks (remember, not losing money is a great result as far as I’m concerned) and decided to see whether I could place a minimum of 5 trades per week as a target. Unfortunately this week has mostly involved me driving around the country and not really being able to keep up with what the market has been doing.

In addition today began with me missing the European market open and trying to catch up throughout the day without reference to a plan. I foolishly went ahead regardless which turned out to be a dumb idea especially on the last trading day of the quarter.

So with one (very small) winning trade and two (larger) losing trades I managed to give myself a wakeup call – preparation is everything. Attempting to make money from the market without doing the homework is basically a recipe for disaster.

The best analogy I can come up with is opening your eyes into bright sunshine having spent the afternoon in the cinema. It’s unlikely you’re going to look your best as you squint like a moron… 😉

Still, not losing my shirt is an achievement compared to previous weeks and 4.75% up on the month is my first positive month. I’ll take that and learn the lesson.

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