October 18th, 2022
1d:2m
1st Trade: Trend Continuation Short
-Not a bad trade here. Took a cheaper contract that was only a 30 delta so I made a little over 50 cents on this move which in reality is still a little much for what I should be doing. I think its smarter to use bigger size and go for 50 cent moves in a choppy environment rather than going for long massive multi point trades. Realistically though in the future when the environment is better 1 point moves could be very feasable. This was a clean VWAP push continuation trade to the downside. We had a lower high and then a lower low. Ideally I shouldve waited for the retest of the lower low to take my profits becuase that just makes the most sense. If I am going for a trend continuation then I should expect the trend to continue. Very hard to know when to scalp and take profits fast and when to hold for th ebigger move though.
2nd Trade: Trend Reversal Long
-This is a perfect example of a trend reversal trade. Again I like that I took this for about 75 cents because trend reversals are much stronger than trend continuation so profits should be larger but at the same time idk if its smart to be going for big moves. When I was trading very well in september I was using bigger size and going for 50 cents and I think for the time being that is what I should be doing day in adn day out. Grow a bankroll and then once I have 3 months of clear green trading I can size up unless it just comes naturally then I am okay with that. I dont want to force myself into anything. On this trade above we have a very clear trend break then a retest that initially fails then rebounds back into the same area. We bounced off PM low and we also filled the gap of previous day close. There were multiple factors that led to this trade being high in quality but I unfortunately didnt really capitalize with bigger size cuz im in my small size mode again to prepare for this 5k challenge account. This is a high quality trade though with most of the help coming from nate calling it out and telling me to be patient and wait for the pm low retest.
Easy Money Trades of the Day:
Trend Continuation Short
- This was a really nice breakdown of the small uptrend pullup and then a continuation to the downside. Was very hard to be able to just somehwat guess what the top would be but I really need to start paying more attention to the gaps on the day and let them fill. If I was more respecting of the 80% of gaps get filled probability then I probably wouldve been able to approach this day in a much smarter way and I wouldve surely made more money.
Trend continuation trade Short
-Again same idea here but this time we actually have an area to short off of. We have a lower high that is being rejected right at the opening drive to the downside that happened in the morning. This is a perfect place to take a short and to sell right at the attempted break of the lows. Wouldve been the easiest money of the day by far whereas that first easy money trade wouldve been extremely difficult.
Takeaways:
I need to pay more attention to gaps and how they fill. I think this is one thing that I truly do not think about hardly every which would help me immensely. If I was expecting this gap to fill today and I was really patient with it then I wouldve been able to approach the day in such a smarter way. Sadly I didnt but that singly switch to my mindset could change a lot of my trades to the correct direction.
