Sunday, 13 February 2011
It only takes a second......
Today you will see why it is such a challenge for me to become a successful trader. After two fantastic days where I'd not only steadied the ship but gone on to produce consistent wins with very little fuss just by doing the basics, I did something inexplicable.
I started today well, mindful of my poor opening trades this past week and claimed another decent win on the Hantuchova v Errani final. There were a few hours till the next tradeable match as the Dubai WTA games on offer were all very low liquidity. I normally would not play any match with under 50,000 matched or if the ladders looked gappy but I just couldn't help myself, I just had to get involved. I made a snap decision on the Pavlyuchenkova v Camerin game, took a price that was way too low and then to cap it all, the scoreboard went dead - I had no idea what was going on and couldn't work it out from the price movements cos the liquidity was so poor. When the scores reappeared, I was up to my balls in red and there was very little way of getting matched at a reasonable price. This my friends, is why you should never trade on low liquidity markets.
I redded out for a hefty loss rather than risk my whole stake but I was so livid that I began to worry where this was going to lead. I was seething at my own stupidity yet again and gave myself a good few smacks on the head! All I had to do was ignore the game, go away, chill for a bit, bask in the knowledge that I was at the beginning of a nice run of form but no, I just couldn't contain my impatience for a measly 2 hours.
I then paced around the room, talking myself through the catastrophe and calming myself down. I went to let off some tension by pumping a few weights, which helps get the aggression out of me. I rationalised the situation and as there were no more games for a while, settled down for some lunch. Refreshed and feeling a bit less self-destructive, I returned and gained excellent profit from both finals in Rotterdam and Paris.
But as you will know by now, I always analyse each bet and find out the true story behind them. I saw Clijsters was heinously low against THE form player of 2011, a girl who really should and almost certainly will be, top 10. So I laid her large. Fine so far but I have to admit, I stayed in much longer than normal because I wanted to recoup my Pav loss. It came off this time but I must remind myself, I'm not a gambler, I'm a trader. I even have a big sign on my wall to remind myself 'I AM A TRADER'!
Generally, I don't stay in any trade longer than a few points. My profit is normally gained very quickly and I wrap it up straight afterwards, going equal green on both players. Why risk losing it all by going back in? Why risk putting all the green on one player? You are only causing potentially more stress for yourself, plus, you have to stay and continue with the game. It's just more gambling and a good trader always tries to eliminate risk and play the percentages. Besides, I want to spend as little time as possible sat at my PC! Any chance I get to wrap up early and do something different, I grab with both hands.
I should have listened to this advice in the Soderling v Tsonga final. I went back in again, greedily, after taking a nice green, in an attempt to recoup more of that Pav loss and ended up red. Fortunately I turned it round but it was a major relief to just wrap things up and finish. I got involved later in the Memphis WTA though I only used half stakes as I was still a bit rattled from earlier on and the liquidity was only just about sufficient. I probably shouldn't have bothered in all honesty, I could do with a rest. All this tribulation is needless if I can just reign in my impatience. Why do I always have to do things the hard way?!