June 20, 2023 (3 Trades) (+$6.00)

Overall Grade: C+

Day Summary: Today we had a pretty aggressive sell off in the first hour of the day where I missed a good quality break and retest trade. I then was super patient only to end up trading chop later in the morning. I expected the short move to keep going so I kept playing puts and considering the bounce we had I am lucky to have managed risk well to be breakeven.

DAILY - SPY

5 Min - EOD

                                            TRADES

Trade 1 - Long 2 Puts @ CPI High (key level) + trendbreak

Grade: B-

  • I am not unhappy with this trade because it was a multifactor trade (key level, trendline + overall intraday downtrend)
  • Following the intraday trend - good
  • entry was early - should have been at trendline retest but I was unpacient
  • stop was a candle close above trendline so I did not stick to the plan
  • bought puts into support - bad

FIX: Stick to your plan

 

Trade 2 - Long 2 Puts (same trade as Trade 1)

Grade: C+

  • I don't usually jump out of trades and right back into them but after I saw the fail off the trendline and another break below the CPI High, I got FOMO and re-entered
  • stop was initially a close above the trendline but as we traded sideways and the trendline got farther and farther away I changed my stop mentally to a close above 436ish
  • I held this trade well even though I had the urge to cover it as soon as I got in
  • good exit after failing to break the low again - this confirmed to me that we were in chop and I stopped trading here
  • still following intradday trend - good

FIX: Don't FOMO - buy puts at the top of consolidation (even though it was a tight consolidation, it would make me feel better in the position)

 

Trade 3 - Long 2 Puts @ Trendline

Grade: C

  • This was essentially a single-factor trade - bad
  • entry was decent at least as I could have a tight trendline stop and it was high in the candle
  • still essentially buying puts into support though (CPI High)
  • following intraday trend - good
  • exited 1 contract at CPI High - smart with a day like we were having, but holding partial did not work here and I got out for a small profit on contract 2
  • stop was a close above trendline so I boarderline should have been out on the green candle close and I got quite uncomfortable on the wick but essentially held to plan
  • There was really just too much previous suppport levels below this to comfortable take this trade looking for a further breakdown

FIX: Look for Multifactor Trades

 

TAKEAWAYS: Get aggressive early when waranted. I had one trade i missed today that I really wanted to take but hesitated and that was the short B&R from 10am (unfortunately no photo but you can see the wick on the 5Min - EOD chart). That trade could have been a day maker and anytime I can get a one and done trade, the better. The less market exposure the better!