Grade: C+
Goals: Be more selective and raise winning %
Reminders/Aphorisms:
- Don't fight the trend;
- Be patient, take good set-ups
- Respect at least 2:1 R/R
Overview: After last week I have to reset. Not sure if I'll take a trade today, only strong quality setups. Friday had a strong green move with 1 pullback. that ended up close to $10 up on the day. The weekly candle ended up with a decent sized green candle. We are still below the downtrend but that was a big high volume candle on the daily. 375.45 was the high earlier in the week and we are opening above that. That level is important and above that we have a level at around 380 and a bigger level right above that. If we break 380 and hold we are technically above the downtrend. Chinese stock market apparently had a huge red day and the Chinese stocks like BABA are showing it. There are a lot of big earnings this week. Potential scenarios:
1) We gap and go up - test the 380 level and then pullback and keep going through;
2) Gap and go up and test 380 and reject
3) We sell off at open to aorund 372-373 and then bounce.
Trade Analysis:
- Trade 1 was a continuation long trade. This looked like it was going to work in my favor but then stalled and started having momentum down. I sold for scratch and good thing I did because it flusehd hard. This was not a strong trade.
- Trade 2 was a continuation short trade after we had broken the 5 minute trend. I respected my risk and cut this on a spike, if I held I could have held through my 3rd trade.
- Trade 3 was the same trade as 2, a continuation short trade. This was lined up with the big zone at 375.5 which was the previous high and we got a move towards previous day close. I took my 50c and then on the runner took $1.
- NOTES: There were a lot of missed opportunities today although there was some sketchy price action like the candle at 9:45 with huge volume. I was patient and took the trades when it counted.
Lesson moving forward: Patience. Take base hits.