December 6, 2022 - (3 Trades) (+$45.00)
Overall Grade: C+
Day Summary: Today was another day where I should have just followed the trend. We literally had an all day sell off, until the last 30 minutes of the trading session. I am thankful to be green today considering I took 3 trades, all of them being longs. I don't know how many times I need to tell myself to go with the trend. It would have just been so much easier to short today. When we have a day with a clear, direct trend ... follow it. I did do a good job being patient for my entries on the longs I did take though. A day like this a couple months ago would have been so bad for me because of how I used to blindly buy dips.
1YR:1D - SPY
1D:5M - 1D:1M - SPY
Trades
Trade 1 - Long 3 Contracts @ Fake Breakdown, Double Bottom (Recent Demand Zone) (Trend Reversal)
Grade: B
- I did a good job being patient for this entry, as I took this trade after 11am, but I did enter just a bit early. I should have waited for the candle to close at least
- We were significantly over-extended when I took this grade so I was expecting a bounce, which helped give me conviction on the Double Bottom
- The fact that we had already broken the 5min trend also made me start looking for the double bottom
- There is some anticipation on this trade which can be dangerous, but I felt pretty good that we were going to get a bounce here
FIX: Wait for the entry candle to close before entering. Try not to anticipate bottoms.
Trade 2 - Long 1 Contract @ Demand Zone (after seeing 1 min bottom wick) (Trend Continuation)
Grade: B
- I'm ok with this trade because I followed my plan and did a better job of using the higher time fram (15min)
- It didn't work out, but that's trading, and I did a good job at cutting my loser at LOD
- This is the point in the day where I should have started to consider we might see an extended sell off
- Good Entry on this trade and I used the intraday demand zones to make a good plan
FIX: Recognize the daily weekness and just avoid this trade all together. No sense in trying to catch a reversal when the trend is working against you this strong
Trade 3 - Long 1 Contract @ Demand Zone
Grade: C-
- This was an unnecesarry trade. Stop going long on a down trending day like this
- Good entry and I was, at this point, expecting a bounce because we were so sold off on the day, but that is a dangerous game to play
- At least I used just 1 contract on this trade, but why even waste the time and the money
- The R/R was good on this trade, but the probability of this finally being the bottom was low
FIX: Avoid this trade. Don't waste your time or money, but if you are going too, don't fight the trend.
Takeaways: Stop fighting the trend. We haven't had much trend throughout the last 2 weeks so maybe I'm just too stubburn to accept it when it's happening now, but I need to trade with the market. It will be so much easier and I can hold for continuation moves. We also rejected off the Yearly downtrend (see 1YR:1D chart above) so I should be ready to potentially see more short moves in the markets.
Easy Money: SHORT !! Every Lower High!!