October 21, 2022
-Today was not a terrible day of trading but it was definitely not good. I acted emotionally and I also took setups that were not clean. Furthermore, I had stops too tight and profits too loose. Tons of room for improvement.
1yr:1d
-We are finally forming a clean bottom on the daily candles. I hope that we can flush down again though so I can get that nice average into the rally. If not I will just aggressively buy pullbacks but in the meantime its definitely important to start really thinking about where the momentum will lie for the coming weeks. Again, need to always be on the side of big money. Fighting them just causes pain and suffering lol.
1d:2m
1st Trade: 1d:2m Trend Reversal Continuation Short
-So we have a trend continuation pattern here once we break the uptrend to the downside. It is important to note that this trend on the bottom going up is actually not broken yet so in all reality this trade was not a clean setup and more of a "I hope this pullback pushes lower" type of trade. Although, it did work well IF I wouldve been able to adjust my stop a little more fluently rather than having it be based on % like webull loves to do. I got stopped out for a 12$ loss but I really missed out on sooo much money by having my stop be so tight. This was a 2.5% risk on a 490 contract so I was taking about a 50 delta risking 2.5%. This meant that my stop was about a 25 cent stop with a 50 cent target. Sadly, my entry was just a few seconds too early and we stopped out my trade and moved lower for about a 2.5 point move which wouldve been $125 if I had top and bottom sold. It was definitely sad to see myself lose in this scenario when I was so close to being right but just a few seconds in the entry position made all of the difference. I think its probably smarter to really give myself at least a 35 cent stop then go for 50 cent wins. In the future I think this trade should probably be avoided most of the time because again we really didnt even break down through the bottom trendline yet and remember that all of the price action matters and if we didnt break the bottom trend then that is a significant piece of information.
2nd Trade: 1d:2m Trend Reversal Continuation
- This was more of a trade that had a true setup but then again this is the trade that also wouldve been very ugly had I not sold for my 50 cent target. I think I got into a smaller contract on this trade but im not too sure. If I did then I was able to have a little bit of a wider stop instead of having it be only 25 cents. I was in the profit then breakeven 3 times on this trade before almost trying to market out from pure fear. Luckily I got the win and made about $22 on this trade so it was nice to risk 12 on the first trade of the day and lose, then make it all back plus profit on the second trade. This is exactly why I have the rule "2 Back-to-back red trades means I must end the day" Because if I took 2 back to back red trades here then I would get very angry and emotional simply because this strategy I am doing is so much about patience and timing good entries. If I wait 3 hours for a trade and I am 2 seconds off on my entry and the trade hits my stop before flying in the direction I assumed, It is extremely unsettling. I hate that feeling so much because its just a slap in the face. Trading is full of moments like this and frankly, life is too. I need to stop giving a fuck which is why im working very hard on a side hustle project that could potentially fund my cheap ass life for now. If I could reduce that anxiety I bet my trading goes next level very fast. Although, I would love to just skip levels in trading and just become insanely rich, I want to keep it slow for now. I will grow this small account from 5k to 10k within 6 months which would be about an average of 1% account growth per day whih would be about a 50$ avg day. Clearly I would have to be making about 100$ avg on my green days and losing about 25$ avg on my red days but with further refining of this strategy I think that is more than feasable.
Easy Money: Trend Continuation Long
-This is a clear long setup here. We have a trendbreak on the lower bounds and then create a higher high after previously forming a lower high. On that strong pullback to the 20ma and the trendbreak fakeout retest zone I shouldve went long and taken a nice 2 point scalp. The rate of change on the day was very strong so that should have also been more on my mind. This was a perfect setup for a long trade but its hard to continue trading after having a nice win that put me back green on the day after starting red.
If I was a God at Trading:
-If I was a perfect trader I wouldve just bought this trade, added on lower high, added again on lower high, then taken profits on the daily ranging breakout but at the same time I think that even though this looks good intraday, if you zoom out then youd realize this is actually not a good setup and should be avoided at all costs. This is clear either 1. manipulation by MM since its 3rd week expiration OR 2. We are about to have a face ripper rally and we are just preparing for the squeeze. Either way I think days like this should either be swing longs or completely avoided altogether.
-Sitting right at the mid range of the previous days at the afternoon breakout. We have seen this pattern flush and fail epicly so many times this year, this is an anomoly to say the least. Trading it wouldve been very hard unless swing long or super quick scalp short. Looking back I am happy I ended up green cuz wow this is a tricky thing to see coming.
