The wheat market played an April Fool's joke on us but it wasn't funny at all. As you can see, price slowly drifted down overnight and continued to drift down into the day session and eventually hit our Stop Loss. 565 3/4 - 549 3/4 = 16 * $50/point = $800 loss.
I said on yesterday's blog I was probably getting in too early, and gave 2 safer entries. Sure wish I had taken one of those safer entries. It doesn't take too many good trades for me to start getting overconfident. When I get overconfident I start taking on more risk. That's what happened here. I know its something I have to work on.
It's said successful trading is mostly getting your psychology right. In my early days I didn't understand how that could be true. I'd think "Are you kidding me! Just give me a setup that works and I'm good to go." Well, after many years of learning and experience, I think I have enough of the technical skills, and I know I can do better as a trader. The obstacle now is getting my psychology right.
It wasn't that long ago I'd be devastated by such a loss and start questioning everything. Now, I can recognize the problem, know I can fix it, and also know I can make this loss back pretty quick, if I can avoid any more missteps for a while.
Overall, this could still be a nice bullish trade. Just needs to be monitored and patiently wait for a valid entry.
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