9/22/22
Grade: B-
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: Had my day job this morning so sat down at my computer around 11:20. When I sat down to browse the market I noticed we were approaching the key 373 demand zone on the SPY. I was looking for a bounce off this level and up to break the downtrend.
Trade Analysis:
- Trade 1 and Trade 2 werer nearly identical trades. Both were trades looking for support off the previous downtrend after the trend had been broken. Both of these entries were too early as I used the 1 minute chart to "confirm" the bounce. Furthermore, the 2nd trade I did not respect my R/R and took a larger loss than I was looking for (25/50c R/R).
- Trade 3 was the trade I was looking for. I'm happy that I had conviction in my thesis and tried the trade again, this time on confirmation on the 5 minute chart. As a result of respecting my R/R I was able to erase my 2 red trades with 1 green trade. This was a very clean trade and I don't know if I would change anything about it.
- NOTES: On days where I get to the market late I shouldn't be eager to take trades, if I see a perfect set-up I should take it, but don't jump in too early. If I had avoided the 2 earlier trades and waited for the 5 minute confirmation I would have had a green day rather than a scratch day.
Lesson moving forward: Wait for 5 minute confirmation of a trend break before jumping in - the 1 minute often time will lead to fake outs and losers.
