October 7th, 2022
-Not a bad turnout from how awful yesterday was but theres a ton of things that I did today that were "new" to me in terms of the way ive been trading recently. I gave up on the idea that I need to stick to certain target and certain stop on every trade. While I do love using bracket orders and I will continue to do so, I think the best way for me to trade is to be buying 1 contract with a wider stop then once I am confirmed correct then I add another contract looking for about 1 point on a 2 contract (B Trades) then probably 4-6 contracts on an A+ trade.
-Yesterday I realized that its very important to know what the micro trend is when trading. I was going short 5 times yesterday whereas if I had went long on any of the trades I wouldve made money on all of them. I need to recognized and remember the importance of the micro and macro trends. Micro trend is anything on the 1h to 30m charts and what the prevailing trend is. Macro is the weekly/daily trend. If we have strong bull moves to the upside on these big bottom bounce days I need to be sticking with those bulls and taking trades with them. If I dont its like trying to surf waves backwards.
(A+)
(A-) etc. are labels I give for the quality of setups. If I lost on the trade there is no quality becuase it is not even good enough to make a D quality trade which are ones I should never be taking in the first place.
1d:2m
1st Trade: Trend Reversal Long (A+)
-I took this with 1 contract of a 0.50 Delta so 50shares of exposure to underlying asset. I held for this awesome move higher and I sold for about a 50 dollar gain right off the bat. My goal in this trade was to take it with 1 contract then to add into it and sell for about a point. I should've added into this on the first trendbreak retest since I was already slightly early on the entry itself. I really wanted to buy there, add into trendbreak retest then sell at vwap. That wouldve been at least a $100 win if I had done so. Yesterday I talked about how I cannot be capping my wins at a certain level because I cant risk having multiple back to back red trades while having my wins be taken at only 1 green trade per day. It just doesnt work like that. I am going to start going for these very long hold trades again like I used to. If I can do this and use options and take the same awesome trades I used to take on NVDA then I could really be having trades that are $100s. I need to be doing that if I am okay with having ridiculously big red days like I did yesterday.
2nd Trade: Trend Continuation Long
-This is where things started to turn ugly. I started taking more and more trades because I was not satisfied with my first win since I really wanted to add into it and not sell the full position immediately. I also had fomo cuz if I had held then 1 contract wouldve been worth 100 so if I added and held for the move through vwap then I wouldve made so much money its stupid. I started fomo chasing this thing higher and immediately lost here and took about a $15 loss.
3rd Trade: Trend Reversal Short
-Here we go again, I thought that maybe we would break down since we broke that smal uptrend (even though we really didnt) but this was a pure fomo trade where I was just angry I was wrong about the last call I took. So stupid to trade like this, I just knew that if we broke down and I had a position I could add into it very heavily and go for a break of the days lows which wouldve been a huge trade for me. I do think that even though the motive behind this trade was wrong, the process of me taking $15 losses for potential $100 wins is okay but very dangerous if I start entering more frequently and early like I used to. I must remember to wait for trendbreaks to occur for me to take reversals.
4th Trade: Trend Continuation/Trend Reversal $AAPL
-This was just an awesome trend continuation to the downside attempt because the chart is beautiful but I need to just remember that these tickers follow the SPY and if I am going to trade the big 5 (top 5 SPY companies) then I need to only be doing it in the prevailling trend direction. If SPY is going long very aggressively then I need to take tickers that are stronger than SPY and go long. Never anything else but that. No shorting tickers when SPY is strong.
5th Trade: Trend Reversal Long (A+)
-This was the day maker trade right here and I was pretty lucky to be honest. I had a call that I didnt even realize I was in and I was down about 20 on it without even knowing hahhaha. I went from a +50 trade on first trade to losing over $75 from that high. I was down about 25 on this call that surprised me and then I saw that we were about to break higher and create a higher low, then I added into it and I had my stop very low for both positions. I got hit on one stop for about a $25 loss (so +$50 to -$45) then the other call still held through that big bottom fakeout. We started to break higher and I added into the trade and this trade was about a $100 win if you include th unrealized money i was down. I had 2 contracts and held for about a full 1 point. This is what I wanted to do in the morning but pussied out of doing because I have paper hands. THIS is what I need to be doing everyday. Find the reversal, take it, add into it, full 1 point move with 2 contracts on B setups and 6 contracts on A setups.
Easy Money Trades: (if I was trading perfectly what were the best trades)
-This is the trade that I wanted to take initially on the day but I sold my original contract too early, right near vwap on the failed move higher. I shouldve been looking for a higher low and to add into the position instead of selling it. If I was doing this perfectly I wouldve added at trendbreak zone, then added at higher low, then added at trend continuation breakout zone, sold 2 at the break of vwap then sell third when trend is broken from full price action below. That would be a beautiful multi hundred dollars trade.
-This was a very nice trend continuation scalp to the upside that would have worked pretty well. I do think that the first break through vwap was probbaly nicer but I need to remember that its time to have blind faith in long trades because bulls are here and they wont leave until something awful happens like bad CPI or something of that nature.
-If I was a fucking god at trading this is the one. Buy at trendbreak, Add higher low, Add higher low, Add higher low, Sell 90% position at the attempted move through previous day close, sell the partial when the trend breaks to the downside.
Takeaways:
-It is time to start focusing more on the micro trend AND how to size properly. I can really work on my starter and my add positions when I am going for trend reversals. Trend continuation trades are fine IF I am not adding on them. BUT trend reversals must be added into if I want to full potential of the trade. If I can learn to add 2 to 3 contracts into a trade and go for about 1 point of profit then I could be having $100 trades which is the ultimate goal. If I can do this correctly, 1. follow micro trend, 2. size big into A setups and still size into B setups but use exponential on A, then I could really find my consistency back. I am craving that same consistency I had before but with true size that can actually do something for me rather than going for tiny $30 wins everyday. I know what I have to do and I know how to do it. I just need to focus more now than ever and really remember what my true goals are in trend reversal trades and how I need to add and go for these bigger moves when they are clean setups like they were today.
A+ Quality setup ALERT
-The micro downtrend is broken to the upside. This signals that LONGs are back in play and should be trusted. Trend Reversals to long side are expected to be very strong and continuation is also expected to be very strong.
-We have a break of the trend then we have a strong supply zone that was broke the previous day which now in turn becomes a demand zone. This is really just a fancy way of saying "resistance has become support" but you get my point. We broke that level to the upside and pulled back. When we have a big micro trend break we must expect any and all pullbacks to be met with buy demand. It is IMPERATIVE that this is respected until micro trend is broken yet again. It is very difficult to fight trends on the intraday and we already know that and act accordingly. Since we were in a micro downtrend for months I was not emphasizing the importance of the micro trend. Since I got shit on yesterday I realize how important it truly it. This was a perfect setup to take massive massive size into. Im talking 6 contract MINIMUM. If we have a setup like this again to the downside some day you better size the fuck up and make a months worth of money in one single trade by being smart, calm, collected, and a professional.
