9/2/22
Grade: A-
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 not being able to trade the day before, I wanted to start the month green so I went in with a good mindset. When reviewing charts pre-market I noticed that the SPY had a big supply zone at 400-401. During the premarket the SPY had been moving up to this level so I was expecting it to come back down and test the lows. While it did not test the lows completely it did make that strong move down I expected. In regards to the QQQ, it also had a 304-305 supple zone level and did the same thing as the SPY.
Trade Analysis:
- At open - I again saw the QQQ/SPY dropping hard with high volume while NVDA was moving higher with a resistance level near it for premarket high (similar to 8/31). My first attempt at the trade I respected my risk and had to close the position for a loss on a pop. However when I saw that there was a strong rejection - I got back into the trade at a similar level as when I did originally. I don't believe holding the previous trade would have been smart as I have to respect my R/R. On my re-entry I caught the big move down and took my partial at $1 (I took 15 of my 25 shares). I then let the rest ride for another 80c. I should have probably let this ride a little longer because I left an easy at least $1 more on the table. I think in the future, for the rest of the position I should close on the first green candle that forms or if it tests my original goal ($1).
- My 3rd test was looking for contiuation down as the SPY/QQQ looked weak. Looking back this was not a great trade as I got in a little low, I should have gotten in a little higher by the premarket low if anything. If I did I could have likely won that trade too. However I did respect my R/R on this trade and properly closed it.
- My 4th trade was again looking for continuation down. This time I got in at a pretty good level, but once I saw that NVDA was not moving after 1-2 minutes, and the SPY/QQQ looked like they were going to make a green move, I closed for around breakeven.
- My 5th trade was a little bit of a FOMO trade. I had wanted to get in short closer to VWAP after the rejection. The SPY/QQQ just had big rejections of VWAP and NVDA did the same. I took this with smaller size because I did see this was a little bit of a FOMO trade. However I waited for the first pull-up/green candle that his another point of resistance (premarket close) then got in again, catching another $1 move. This time I let the partial run but on the first green candle I closed it out (still for profit). Good thing I did because it started moving against me after that trade.
Lesson moving forward: When leaving a runner - look to close it out on the first green candle that pops up or at the original target $1. Also don't be afraid to take full position size later in the day when green.