November 28, 2022 - (3 Trades) (-$155.00)
Overall Grade: C-
Day Summary: This is my first review in almost a week because of Thanksgiving, but I had a pretty solid week last week, taking 8 trades in total with 7 green trades. My only red trade was actually an accidental trade to start the week. It was a choppy market so I did a good job of scalping, mostly taking reversals because of the chop, but I think that is partly where I went wrong today as I was trying to catch a reversal on a strong, trending day. I anticipated a couple bottoms as well which goes against what I have learned. I need to do a better job of waiting for confirmations if I want to take reversals.
1YR:1D - SPY
1D:5M - 1D:1M - SPY
Trades
Trade 1 - Long 5 Call Contracts @ Trendline retest I guess (Trend Reversal)
Grade: D
- I see what I was going for here, but looking back it was really dumb to try to catch a long at this point with the trend working against me
- The support level that I based this trade off was also kinda bullshit. I should have recognized that.
- Seeing that this was also an accelerating downtrend from a third lower high was an indication I should have picked up on that I was going to be on the wrong side of this trade
- I waited quite a while for this trade and I think I got a bit impatient to trade
- I could have cut this loser faster
FIX: Don't trade until you see a great set up. This trade was literally not even worth the time, let alone the money lost
Trade 2 - Long 5 Call Contracts @ Trendline Retest (Trend Continuation)
Grade: C-
- This trade was slightly better than Trade 1 but still not an ideal set up
- I think I was trying to revenge trade this from Trade 1 because I was essentially going for the same bounce, taking basically the same trade. Not smart for the same outlines reasons above
- If I wanted this trade, I should have waited for a better confirmation such as the big volume fake breakdown-recovery of PM Low. Instead, I stopped out on that candle
- I can see what I was going for here, trying to catch a long off the trendline retest and previous supports, but I should have expected a test of PM Low
- All in all, this trade was just not worth it and should not have been taken
FIX: Wait for a strong reversal confirmation sign (volume related) on days that are trending hard
Trade 3 - Long 5 Put Contracts @ Trendline looking for Trend Continuation move short
Grade: B-
- This was my best trade of the day, and I should have only taken this trade. if that was the case, I'd only be red 45$, instead of $155
- I was looking to see a new low set on this trade and near the previous trendline would have been my target, and I did a good job of holding my full position size to my target, but unfortunately it flipped in my face
- I was up on this trade about 65$ unrealized on the attempt at PM Low, so if we had broken the low, I would have recovered all my losses from Trades 1 & 2 which is what I am trying to do with my trading now
- Looking back on this trade, we were so sold off at this point I should have expected that hold of PM Low
FIX: I should probably have cut this right away once I saw it hold PM Low, that way I would have at least gotten small profits to cover the comissions for the day. Also, if I'm going to trade trend continuation, I need to be early to the trend
Takeaways: I was totally fighting the trend today, on a day that was proving to actually be holding trend. Coming from such a choppy week last week, I think I was expecting a reversal. I should now be asking myself through the morning: "Are we trending or chopping?" - Remember the most important rule we have learned from largecaps in 2022: DON'T FIGHT THE TREND!! I need to come out with discipline tomorrow and really be patient for a trade that fits my strategy and that I can manage properly. I need to make sure I don't dig myself a big hole to start the week, as this was a fairly big red day.
Easy Money: Shorting lower highs all day long, following the trend in a channel