November 9, 2022 (5 Trades) (+$123.00)
Overall Grade: B
Day Summary: Today felt like easy trading. I took 5 trades and I won on every single trade (excluding 2 contracts on Trade #2 because the total P/L of the trade was still positive). However, I still made A LOT of mistakes, despite having my best green day since Sept 19. Days like today show me how much I still have to learn. This could easily have been a $200-$300 green day, yet again due to the fact that I'm such a bitch at holding my winners. So the crazy thing is, I need to be more greedy lol. I have gotten quite good at risk management since March and I feel like, for the most part, I am in control of my losers. Now its time to get greedy on those winners. What I can't seem to get into my head is that you need those big winners to overcome your losers. I am actually lucky my win % is high enough to justify this right now, but this can't be comfortably sustained unless I make sure I have winners that eat up 2-3 regular size loses.
1YR:1D
1D:5M - 1D:1M
As for the chart today: I drew a demand zone from yesterdays big bounce zone where we recovered $7 of our $8 sell off and it was respected extremely well today. See below photos:
Using this demand zone alone could have set up so many nice trades today, especially the final retest short to the Rest-Of-Day Selloff. This level will be important going forward.
Trades
Trade #1 - Long 3 Put Contracts from VWAP during Downtrend (Trend Continuation Short)
Grade: C+
- Not super happy with this trade. Decent I suppose because it rejected off of VWAP and I took it to the low, but that very well could have been a Higher Low off of PM Low
- I did take profits too quick on this but I'm glad I just got out at the low because I wasn't real confident taking this trade
- I need to avoid taking tiny scalps like this with options because it's almost not even worth the fees
FIX: Wait for a better set up than this. No need to take this is Trade #1 of the day
Trade #2 - Long 3 Call Contracts on trendbreak retest (Trend Reversal)
Grade: D+
- Too sharp of a trendline to try to get a reversal from
- I was basically guessing at the first bottom. Way harder to determine risk without having a recent low to base it off.
- Got lucky to be green like 3$ on this trade because 2 of the 3 contracts closed small red
- No need to take this trade. Avoid trading like this. This was FOMO from not holding Trade #1 from 2 minutes earlier
- Also, in most cases, there is no reason to take a trade immediatly after closing another
FIX: Don't try to get reversals, especially without a prior formed bottom. At least I didn't try to guess the bottom randomly, I did wait for a "trend break"
Trade #3 - Long 3 Call Contracts Trendline Recovery after Double Bottom (Trend Reversal - Right Side of The V)
Grade: A-
- This is the first A-grade trade I have given myself since I started reviewing
- This coulda been a day making trade. I was very confident in this trade, with a good entry. The previous double bottom was my indication to hold this trade to at least retest the previous HOD and I BITCHED OUT!!
- I think I netted like 70$ on this trade but it could been a $150-200 trade. I NEED TO HOLD A TRADE LIKE THIS. I NEED TO BE GREEDY!!
- I'm actually most disappointed in this trade even though it was my biggest winner of the day simply because it would been fucking awesome to let this trade play out and I had no reason to close it really
- The PM LOW (Purple) was right there at VWAP so I suppose I was worried about that but I should have taken 1 or 2 contracts there and let at least 1 ride because of the double bottom.
FIX: As usual hold the winners, or at least scale out of them if I feel like my emotions are getting the best of me.
Trade #4 & #5 - Long 1 Put Contract on Trade #4 - Long 2 Put Contracts on Trade #5 (Attempted Reversal Rollover Trade)
Grade: A-
- I grouped these 2 trades together because they really could have been 1 Trade
- I took 1 contract on Trade #4 because I didn't want to risk my daily profits but took 2 contracts on Trade #5 because I was more confident it was going to roll over
- I should've at least had a target at the demand zone
- I actually like this trade because I've seen it so many times in the past and I knew that low from the morning wasn't going to hold again after already testing it for the previous 15mins
- I wanted to add into the break and should've, although if I did it on Trade #4 I probably woulda panic sold out when it didn't go immediately
FIX: Target to demand zone at least as this was the significant level of the day so far. Add into the breakdown of the initial day bottom to increase profits.
Takeaways: Pay attention to supply and demand zones when you see them being respected. Hold winners as usual. Don't take dumb trades like Trade #1 & Trade #2
Easy Money: The easy money today was to, for sure, play the demand zone from yesterday after it showed to be important.