9/7/22
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: Work being done in the house so I was cautious about trading since my attention is divided. It was a flat open, if I had to predict what would happen I said that the SPY had room up to around 394, 388.31 is the bottom target. At open the SPY and stocks all moved up strong and NVDA rejected hard, weaker than the overall market.
Trade Analysis:
- I was being cautious today as work was being done on the hosue and the market started flat.
- My 1st trade was the 3rd leg of a downtrend - I took it a little early looking for the rejection of previous day close with not full share size since it wasn't an A+ setup. There was a big green candle that had recovered off of premarket low/demand zone but it wa slower volume than the preivous candle so I thought it would continue down. I was looking for $1 risking 50c. I respected my stop loss and took a small losing trade. The reason I say I got in early is because it then tested the 20 EMA and rejected harshly.
- After the 20 EMA rejection I got back into the trade. I took my main position at close to $1 a share, but my runner went up on me and I only got like 30c on it. However I believe this was a proper trade.
- My 3rd trade was not a great setup and I got a terrible entry kind of chasing the trade. My thought process was a long period of consolidation right above the premarket low/demand zone. I thought this was going to be a fast strong move through the demand zone. While I did get the move, it didn't hit/hold my goal so I did not close out and then the trade reversed on me for a small loss. If I had to learn something from this trade is that on the less certain trades if it looks like it's going to turn on me, at least take a partial.
Lesson moving forward: Do not chase trades, if you miss the trade another chance will present itself.
