Grade:
Goals: Be more selective and raise winning %
Reminders/Aphorisms:
- Don't fight the trend;
- Be patient, take good set-ups
- Respect at least 2:1 R/R
Overview: Yesterday the SPY was super difficult to trade again in a tight consolidation. Again we did not get any type of move until later in the afternoon when we finally bounced off the 389-390 level and mmoved up before rejecting at 395-396 and then recovering some at end of day, creating a green candle on the day. Overnight we moved back above the 395-396. Today will be a big day in determining the direction of the market based on the price action I believe. We likely continue to fart around and not make big moves as it's a Friday and there has been odd options activity going on. Potential scenarios:
1) We likely use 395-396 as a support now and move up to test 400 at which time we probably consolidate around this level until we can either build up enough buyers or sellers to break through or reject. Will have to follow price action closely to determine the best play.
2) We could sell off at open down through 395-396 and back to the 389-390 level we consolidated against for a while yesterday. Again if we sell off at open into the zone I will look to price action to determine whether to get into longs or shorts.
Trade Analysis:
- Today was an abject failure again - between work and things in the house causing me to miss perfect short trades in the morning I started taking FOMO or bad trades. I managed to work myself back to a manageable red day and then in the afternoon decided to take a full position size stupid trade which put me heavily red on the day again. I need to learn that when I can't focus becuase of work I should NOT be trading. Do not even open the charts if I have to. Dumb is the only way I can describe myself and what I did today. Traded way too many times on suboptimal setups. The past 2 days of having a grinding market also played into this. If I keep having days like this I cannot be successful.
Lesson moving forward: Trade to risk or reward, stop letting emotions get you out of trades.