This past week was fundamentally the worst potential price action monthly for crude oil futures. Not only was the long-awaited FOMC (non)event quelling market movement midweek, it overlapped the monthly contracts rollover process.
With those two dynamics in play, nobody here expected stellar price movement nor was anyone surprised to see what we predicted & expected come to pass. Eventually all traders realize that nothing is static when it comes to financial markets. Everything is dynamic, a constant ebb & flow that can sometimes be predictably forecast.
That’s why day-to-day-to-day “results” are meaningless… maybe less than meaningless, actually. Of course it’s human nature to emotionally desire keeping daily score because what the hell, they are day traders. So therefore they better be capturing the bulk of each day’s maximum favorable excursions (MFE) lest it’s a serious snafu and something’s wrong somewhere.
Well, the human-emotion desire for peak performance and perfection certainly get in the way of most aspiring traders’ progress. Fact is, people who strive for perfection in trading only wind up blowing up their accounts, every single time with zero exceptions, ever.
As for myself, I’m indifferent to daily price potential while totally focused on the end result. By that I mean week’s end, month’s end. By that I mean targeting +$500 or better daily per CL contract risked per trade, while avoiding (-$500) in that process. Once in awhile the (-$500) is and of course will be again reached. But if I do my job properly, the $500+ will be met far more often.
And of course there is no reason in the world why you cannot learn to do the same thing, too.
For more daily updates from Austin, visit his blog at Coiled Markets.