9/19/22
Grade: D+
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: So my premarket analysis and thoughts was that the SPY/QQQ were starting down very little on the day. The SPY was near the 380-382 demand zone so I believed the SPY had move up to around 388. Ultimately we had a green trend day, but I trade poorly and took a max loss red day.
Trade Analysis:
- Trade 1 on NFLX I saw that NFLX was stronger than the SPY/QQQ at open. It had a pretty strong move down so I thought we would get a bounce off VWAP and a move higher like the SPY/QQQ. I was wrong and took a $1 loser. This stock was moving fast so I didn't plan my R/R well.
- Trade 2 was a garbage revenge trade - looking for continuation to the downside
- Trade 3 was another garbage revenge trade looking for continuation to the downside when the SPY/QQQ were both moving up.
- Trade 4 was a solid trade on the SPY off a rejection off previous date close and premarket high. While the SPY/QQQ were looking like they were trending up, this was a nice scalp for 50c, risking 25c. In terms of the exits I took my partial at 50c and then left the remains there but should have held for a larger move down. However I respected my rule to close on a green candle.
- Trade 5 was another SPY trade which was a loser though. I was looking for the trend break on the 5 minute. I waited for a retest on the 1 minute, however I got in too low and was too early on the trade. I at least respected by R/R and closed it out when it needed to be closed.
- Trade 6 and 7 are not depicted above but they were the trend break on the 5 minute on the SPY. While I got in a little early on the first trade it never truly tested my entry or my stop loss. I held for my goal of 50c but closed my 2nd half at my entry. I should have closed my 2nd half of the first trade when I saw the first green candle to print and preserved more profits. On trade 7 I took my profits at 50c, however this was a larger trend and I should have looked for it. The move ended up moving close to $2. At the very least, I should have let my partial run, but since I took smaller size I took the entire positon at once.
- NOTES: I need to work on identifying when a trade is a larger trend trade and holding for a larger move. When doing so I can even take my partial and let the second half ride. I also need to be careful trading tickers I'm not familiar with and getting myself into a hole quickly. However I am happy that I kept my composure and was able to reduce my damage on the day.
Lesson moving forward: Identify larger trend trades and let the trade work or let the runner work for you. Also don't take stupid random trades with no plan on random tickers.