Day 37: Day Trading Journal

6月5日

Day 37: After a gap of about 15 days during which I was not trading, and trying to figure out if I can find a better algo strategy or trying to find out if manual trading is better. Since the algo that I had deployed was doing good in paper trade but real trade is a way different battle since the market gives you the worst of price at both times - entry and exit, it resulted in a breakeven after a month, now I decided to focus on my manual trading instead.

I realised that when trading manually, decision making is very complex and cannot be fit in a simple algorithm even when I am looking at just one indicator. The brain actually analyses many different things without even we realising. Most of the time, brain picks up correct entry signals. I tested out my strategy by paper trading and backtesting on different stocks than which I normally follow and I found that the strategy is good and I do good and I am profitable in that. The issue however arises when real money is involved as the most difficult part to master i.e. our emotions, are not involved in backtesting or paper trading. We need to trade live only for that and build that mindset. Nothing else can prepare me for that, so its all real trade for me now, very small positions but rigorously testing the same strategy on different stocks untill I have mastered the emotions.