June 12, 2022 (5 Trades) (-$22.00)
Overall Grade: D+
Day Summary: There was some nasty, nasty chop out there this morning. That should have been expected really because we have CPI tomorrow, followed by an interest rate hike on Wednesday. Once we were stuck in a 1$ range (SPY) in the morning, I should have just walked there, although the best action came in the afternoon today. Unfortunately, I had traded myself out of the game at that point. Classic mistake. I also decided to fight the trend today, and it bit me in the ass, as it usually does. Really not a great showing today, but I managed risk well at least.
DAILY - SPY
5 MIN - EOD
TRADES
Trade 1 - Long 2 Put Contracts @ VWAP/Former Sup/Res level (Range)
Grade: C+
- In a trade like this, it is probably better to focus my entry at VWAP in order to lower risk on this trade, especially early in the day
- I actually entered after a red candle closure back under VWAP - stop was a close above VWAP (I should have exited the candle before I did)
- It was also good to get in at a key level that had shown as support/resitance multiple times already
- Even though it was a loser, I'mok with taking this trade
FIX: Patience on the entry
Trade 2 - Long 2 Call Options @ Wedge Support (Range)
Grade: C+
- Even though we don't have a trend yet, I'm glad I was positioning on the side of the PA that was holding a level (Top-side of wedge making LHs)
- I could have bought closer to the support, but after I saw the red candle get bought up and close I had a bit of FOMO
- I did think to myself that this is technically a range, so I should be buying as close to the bottom and selling as close to the top as I can. Best R possible
- I planned to stop at a candle close below trendline/PM Low - wicked it but no close (shows the importance of candle closure)
- I cut this trade breakeven after seeing us fail at VWAP bc I recognized that this was a ranging day - happy I am seeing that in the moment
FIX: Overall, not a bad trade, but when i recognize a range, try to buy as low and sell as high as possible
Trade 3 - Long 2 Call Options (ORH) (Range)
Grade: B-
- Considering we were ranging on the day and have big data this week, I decided to play the ORH
- After seeing us continue to find buyers at the OR level, I decided to get long calls at the OR - stop was a candle closure under the LOD
- No reason to cover the first contract where I did - should've let that candle close bc it closed above the intraday support level
- 2nd sell was a good sell into VWAP on a range day
FIX: Hold full size in winners unless seeing signs to get out. Closing early is not "being conservative" it's trading emmotionally (as long as the trade is still going as planned"
Trade 4 - Long 1 Put Contract (morning resistance level expecting a range day - so basically no set up)
Grade: D
- This trade was unneccisary
- I got lucky to get out for a small lose bc I only took 1 conract and got a move back down close to my entry
- Stop was the high just above my entry but then it hit and I decided to just hold it to HOD - Not Smart. Follow your rules
- Fighting the current intraday trend off the low
FIX: Avoid this trade
Trade 5 - Long 2 Put Options (Trendline Retest)
Grade: D
- Fighting the trend of the day ... again
- No strategy or play for this specific trade so in general I should just avoid
- Just trying to catch a reversal here when we were ovbiously holding the morning highs
- This trade wa sliterally just so dumb. Looking back at this, it was a screaming long
FIX: Follow the trend
TAKEAWAYS: Once again I learned the importnace of following the trend. I don't know why I feel like I can't trust it. I've seen it work a million times at this point. Also I need to work on holding winning trades when there is no reason to close them
