9/30/22

Grade: F

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: Last day of the month so make it count, don't take a big L. The SPY yesterday sold off down below the 362-363 demand zone we had been respecting and bounced around 360.93 which was the previous low. We are opening the day flat pretty much. Again I will be looking for either a move up towards 370-372, or a big move down, crashing through this 362-363 level and through the 360.93 level. The QQQ has actually defended it's June low level of 270-271, so if we are going to see a big move down it needs to break down hard past that level. Goal is to be patient at open and wait for a trend to develop and take any 2nd leg I can identify. Hopefully the market will provide a chance to get in if we have a strong move at open.

Trade Analysis:

  • Trade 1 was a continuation trade off the big move that I missed on the first gray arrow. The price action was consolidating and I got a great fill near the top of the consolidaiton. My target hit but TOS did not fill me and then the trade flipped on me almost instantly putting me down $1 and I had to flatten. This put me on tilt. After this trade I should have stepped away for a couple of minutes at least because it lead to 2 further bad trades that put me deep in the red.
  • Trade 2 was 100% a revenge trade, there was really no thought behind it besides trying to prove myself right the first time.
  • Trade 3 was another revenge trade, at least this one was looking for continuation of the breakdown below premarket low. I took this way too low though and took another loser.
  • NOTES: First gray arrow I wanted to get in short but I didn't take the trade because I could not really explain why I wanted to go short. Looking back on it there was a rejection on the previous day close, still wasn't a high quality setup but I would have made $2 on it easily.

Lesson moving forward: After a bad beat walk away and give myself at least a 5 minute break and don't take stupid revenge trades.