December 5, 2022 - (6 Trades) (+$127.50)

Overall Grade: B

Day Summary: Today was another massive downtrend day, similar to one of the days we had last week (Monday I think), but at least I didn't try to go long all day like last time. I did, however, end up going long towards the end of the day because it felt over extended. I could have done a better job being patient for that mid-day, but got a couple great long trades in the last hour of the day. Overall though, the best type of play to trade today would definitely have been to go short and hold until it broke its channel. I missed that opportunity, even though I was short in the perfect spot on my first trade of the day, but more on that soon.

1YR:1D - SPY

1D:5M - 1D:1M - SPY

                                                            Trades

Trade 1 - Short 3 Contracts after VWAP Fail @ Supply Zone, Trendline Retest (Trend Continuation)

Grade: B

  • This should have been the Trade of the Day, but I fucked it up with my paper hands - I mean I know I suck at holding but come on mann! Why would I cover this so soon ?? No reason to cover this
  • My original target for this trade was the demand zone from the data candle bounce, and oo boy did we hit that, plus another 15 points
  • I always say I need to hold my winners but I'm doing nothing about that. Its time to start changing that (Trades 4, 5 & 6 today were good holds)
  • Other than that, I did a great job being patient and waiting for a great entry on this set up

 

Trade 2 - Long 2 Contracts on Pull Back to Supply Zone after Big Volume Green Candle (Trend Reversal)

Grade: C

  • At this point in the day is when I started going for the reversal
  • It is a bit dangerous to be going for the reversal without solid confirmation on a day that is downtrending as strong as today was
  • I did a good job being patient for my entry on a pullback and cutting my loser at the low, but overall this wasn't a high probability set up

 

Trade 3 - Long 3 Contracts on Pullback After Big Volume Candle (Trend Reversal)

Grade: C

  • Very similar to Trade 2 and was going for the same thesis
  • Again dangerous without confirmed bottom but it felt overextended - I need to be careful with that bias
  • I sized up to 3 contracts on this trade to make my money back from Trade 2 and that is a very dangerous habit - It also didn't even work lol - but I thought because of the 2nd big green volume candle, that this trade had a higher probability
  • Overall, even though I like fake breakdown, big volume candles, these types of trades can be very risky and fail quickly

 

Trade 4 - Long 5 Contracts (3 on first entry, 2 on second entry) after Big Green Volume Candle, 5min Trendline Retest (Trend Reversal)

Grade: C

  • This was the 3rd stab at this trade, and I should be very careful of doing that because that can easily cause me to overtrade and every time I enter a trade, I am exposing myself to mroe risk
  • I was, however, more confident than the first 2 attemps (even though the chart looks worse) after seeing it try for a 3rd time
  • I did almost stop this trade out when it broke the low after I entered, but I decided to add 2 more contracts because of the 5min Trendline Retest
  • I still decided to exit early because I was trading from the red at this point
  • Overall, seeing now that we were in a massive daily downtrend and reflecting more, these reversal moves are just so much more risky than when we're in a choppy market

 

Trade 5 - Long 2 Contracts after 5min Bullish Wick on 5min, Double bottom on 1Min (Trend Reversal)

Grade: B+

  • I like this trade, and the big giveaway for me was being so extended and then the double bottom fake breakdown on the 1min, leaving the 1min wick (a wixk like that usually is a sign of reversal...for me at least lol)
  • I only took 1 contract at first because I really didn't like the entry but I didn't want to finally miss out on the reversal
  • I decided to add another contract when I saw it making higher lows
  • I set my stop at LOD and let this one ride
  • I went to take off half my position at the resistance line (1min chart) but accidently sold 3 contracts, making me short 1 contrcat so I just flattened the position
  • I did a good job holding this trade, especially since I fucked it up on Trade 1 today

 

Trade 6 - Long 1 Contract @ Demand Zone Retest

Grade: A

  • This was a great set up, unfortunately I only took it with 1 Contract because I was finally nicely green for the day and didn't wanna ruin it, however this was a trade I should have been full size on, or close to it
  • This trade felt so easy, a perfect bounce off of the previous demand zone while being significantly over-extended 
  • I did a great job waiting on my entry and almost got the perfect low just to watch it bounce strong right back to the resent high
  • I wanted to hold this for a big move to the box above (where it did eventually hit) but moved my stop loss up to guarentee some profit, which I think at this point in the day was a good idea
  • Really, I'd be extremely happy if this and Trade 1 were my only trades of the day

 

Takeaways: Continue being patient and wait for those high probability set ups. HOLD THE WINNERS! You don't need the 30$ but could use the $300. Try not to be so convinced that a bounce is coming during downtrend days. Wait for a more confirmed bottom like Trade 6. Remember to follow the trend, not fight it, because the best thing to do today for the EASY MONEY would have been to draw a downwards channel and short and hold this shiit!