November 29, 2022 - (6 Trades) (-$145.00)
Overall Grade: D
Day Summary: Today I took a couple decent trades but ultimately let my Degen come out and take over, resulting in a second consecutive big red day. I need to recognize when I'm trading in Fuck It Mode and just shut down my charts. There was no point to that and I ended up just digging myself a bigger hole. I know I will come back from this, but it will take some days and I will likely end the week and the month red now, especially after fees.
1YR:1D - SPY
1D:5M - 1D:1M - SPY
Trades
Trade 1 - Long 5 Put Contracts @ VWAP (FOMO)
Grade: C-
- There was no point to taking this trade, even though it was a green trade
- I took this trade before even drawing any trendlines or looking for any direction
- This trade was also taken less than 10mins into the trading session, a time when my stats show I typically lose money
- I also held through significant risk for the amount of profit I actually took - I'd be lucky if this was even a 1:1 trade
- I should have known I wasn't going to be in a good trading mindset today after this trade, because I very rarely now trade right out of the gate like this
FIX: Wait until 10am to trade and don't guess trade. There was no real strong thesis for this trade other than I thought VWAP would hold because of yesterday's sell off. In general, avoid this trade!
Trade 2 - Long 5 Calls at Trendline Retest/ Support (Trend Reversal)
Grade: B
- This was actually one of my better trades of the day but I bitched out and did not hold it for NO Reason
- I really don't know why I sold these calls, as I was only down $5, and this ended up moving all the way up to PDC & VWAP which were my targets
- This was better than Trade 1 but I held Trade 1 through drawdown and cut Trade 2 which actually had a these and plan
- This was my 2nd warning that I wasn't in my normal, proper headspace today for trading and shut down the charts
- My risk was very limited on this trade - AS USUAL, I NEED TO HOLD WINNERS !! This could have been a great trade and I could have finished up on this
FIX: Follow your trade plan! Otherwise, why the fuck do you even have one??
Trade 3 - Long 5 Calls @ PDC (Trend Continuation)
Grade: B
- I see what I was going for on this trade and I was actually right about how it played out, just a few minutes too early
- I was expecting this to have a fakedown move and continue up, but I should have waited for confirmation move (Green wick where I stopped out) instead of just blindly trying to buy of PDC
- Bummer I stopped out 1c from the perfect low on the contracts for this trade, and it did go close to target (box above) so if I had timed it right, this also could have been a day making trade
- I considered re-entering right after I stopped out, and in hindsight I should have, but I had just lost 125$ on that trade and didn't want to rush right in to another one
FIX: Don't just blindly buy at levels, even significant levels. Wait for them to hold, or show some type of fake breakdown. Otherwise, it is basically a guess where it will reverse.
Trade 4 - Long 5 Calls on Pullback to Intraday Supply Box (Trade Continuation)
Grade: B+
- Actually again, this was not really a bad trade. Now that I'm reviewing it doesn't seem I traded that badly today, just went Degen on my last trade
- Good entry on this trade waiting for the pullback to the intraday supply zone we had already seen reactions on multiple times in the day
- Tried to take some off on the white arrows but could not get filled, but ended up getting 4 of 5 off into the final push and stopped the last one around breakeven
- I was looking for that bigger breakout move to retest the previous high or even the trendline, and I did a good job holding full size, but did try to take some off once I was seeing weakness
- Overall, I manged this trade well. I got out at the perfect time with my last contract because this became a huge sell off
FIX: Recognize weakness into the 2nd attempt and take off full size, especially when trading from the red
Trade 5 & 6 - Long 5 Put Contracts
Grade: FOMO - Both were kinda shit but Trade 6 was absolute trash - Should not have even been thinking about trading this chop zone, especially with options!
- First off, I should not be trading in a chop zone like this, although I realize the short I was going for on Trade 5
- I should have taken the first trade as a winner and walked (-$22) but I FOMO'd into more Puts for Trade 6 because I saw it fail the pop after i took profit on Trade 5
- Trade 6 literally ruined my day, and I actually had the thought beforehand to cover my puts and flip to calls but conciously decided to let it flip in my face as a way to punish trade
- Biggest cause of damage though is that I refused to stop this trade out and let it move against me. I could have gotten out with significantly less damage if I stopped out on the first breakout
- I need to recognize when I am trading on tilt (and I know when that is emotionally) and actually stop trading. I allowed weakness to overtake my discipline today. I can't fix it now, so i need to move on and be patient for a good set up tomorrow
FIX: Recognize emotionally when I am in Degen mode and don't take any trades! Shut the charts and go do something else. Its better than forcing tardes and loosing money. Also don't FOMO !!
Takeaways: It was mostly a lack of discipline today that caused me to have another big red day. Whether that was taking a trade right out of the open (Trade 1), entering early on Trade 3 or just being a Degen on Trade 6. There are more trades coming. I can't chase trades, I need to be patient and let the good ones come to me, because they will. Know your emotions and know when it is not ideal for me to be trading. Tomorrow my goal should just be to be green.
Easy Money: Maybe the big sell off ? IDK