Something clicked within me today. Since the football debacle on Sunday, I have traded terribly but on Wednesday, I finally stopped the rot. I managed to get my head sorted and finished the day with 2 excellent wins. Since then, I have won every single trade and been more in the zone than Usain Bolt breaking a world record. Everything just finally came together for me, I was in complete sync with the markets, my trades ebbing and flowing in the right direction on almost every occasion. The thing that finally clicked was something I had never fully comprehended before - trading the market.
Often, experienced traders will speak about how you shouldn't trade the match, you should be trading the market. As my trading has always been based on reading the game in-play, I never quite understood what this meant. To me, trading the game and the market were the same thing; you had to read the game to read the market successfully. I now realise that this isn't necessarily the case. There are times when it is more important to know what the market is likely to do, rather than what the players are going to do. Instead of placing a trade based on who will win the next point or the next game, sometimes it is better to know how the corresponding market shifts will affect you.
Although I've known exactly what is going to happen from point to point for many months now, that hasn't always meant that I've traded accordingly. Too often, I've tried to predict the match and put myself into poor risk-reward situations. Changing my strategy has opened my eyes up to what I really need to be doing. I need to find the correct balance between reading the play and anticipating the markets. Last week, I did exactly that with the WTA. Today, what pleased me most was that I was able to do this on every type of tennis match; ATP on the clay, WTA on outdoor-hard and a fast indoor court with the men.
Another great thing was that I traded all day but the hours flew by quickly. I actually enjoyed the cut and thrust, the fast pace of the market and the constant twists and turns in momentum. A million miles away from the slow, predictable, boring football markets that I used to hate trading. I relished the challenge of pitting my wits against other traders and trying to predict what was going to happen next. It wasn't a chore as it has often been in the past. It wasn't a struggle to stay focused or to dig myself out of massive holes like it has been on so many days. Today, I finally felt like I was a professional trader.
Am I over-reacting? Maybe! But I just want to bask in the glory and record it as an example of what trading could and should be for me. God knows, I berate myself enough for the bad days!
(My P&L for those 24 hours of winning trades, stakes no higher than £100. The profit could have been even better but I decided to make sure I got medium-size wins on the board, whilst I'm getting out of this bad spell, rather than maximising the green)