Grade: B-
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: Had a day off of trading yesterday but it looks like the SPY continued to its tight ranging pattern. Yesterday looks like it would have been virtually untradeable. To trade in these market conditions you need to be extremely scalpy and catch established tops/bottoms and ride the other way for a small scalp. I think we'll probably continue like this until after Thanksgiving. Potential scenarios:
1) We will likely continue to bounce around at similar levels. We are starting above the 395-396 zone so I think we'll sell off in the morning back down to around 393, where we'll recover a little and then close the day flat around 394.59.
2) We could see a move up, with the next resistance at 400, although this seems unlikely. However there was a weird reporting candling on the SPY that tapped 400.
Trade Analysis:
- Trade 1 was a trend continuation short. I missed the first entry at VWAP and then took the 2nd pull-up on the 1 minute and this trade worked for me almost instantly for 50c. I took the whole amount off at 50c since the market has barely been moving and a 50c move is big these past 2 weeks.
- Trade 2 was a trend continuation short on the 5 minute chart, however we had been moving up. We had topping tails on the 5 minute and looked to be rejecting at VWAP and moving back down. I took it with smaller size but this was not a good trade to take looking back on it. This was not a trade I should have gotten into as it was not optimal.
Lesson moving forward: Trade to risk or reward, stop letting emotions get you out of trades.
