Penny Wise Dollar Foolish

What does it mean to be a penny wise dollar foolish?

Well … let me tell you a tale of two Sunday’s.

Last week on Sunday the market opened up considerably after the Masters (Golf) tournament and I was able to capture 93 ticks on two trades during the overnights. But just a week later I only get plus 2 ticks, when I woulda, shoulda and coulda have had a lot more.

This trade set me uip for my undisciplined trading, even though, I felt good about myself before I started trading. I traded knowing I let one go by last night by moving my stop loss in too close and was stopped out of the trade with only a 2 tick gain.

 

Penny Wise

If I don’t get control of my trading decisions, then I will not make it. There is a fine line between confidence and cockiness. I need to trust myself and my trading signals better. When I allow myself to overtrade, then I accumulate trading losses getting rope a doped right out of the market. There has to be a happy medium.

The Crude Oil Futures Market fundamentals have changed and I am having a very hard time adjusting and adapting to what is going on. Seeing all this movement in the overnight market has unsettled me from my normal trading stance.

Dollar Foolish

How long am I going to beat myself up? I am my own worst enemy in trading. I take losses to easily and I move to breakeven too quickly at times not allowing the Crude Oil Futures Market enough room to operate within a trading range or congestion area.

This is what I mean by being a penny wise dollar foolish …

A 2 tick winning trade vs a 47 tick losing trade … today was one of those trading days I wish I could get back. But it is not to be. Learn from it and move on!

At least I know that I can trade … and what that doesn’t kill me only makes me stronger!

 

Good Trading,

David M. Knight
TradeCraze

P.S. Have you seen our Ultimate Day Trading Formula Yet? Check it out!

 

 

 

About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.