November 3, 2022 - (2 Trades)
Overall Grade: A-
-Today I only took 2 trades which is awesome for me! They were also my first options trades (other than a test trade last week when I had shit wifi in Las Terrenas)
1YR:1D
1D:5M - 1D:1M
Trades
Trade #1 - Long 2 Put Options @ PM Low (Trend Continuation)
Grade: B-
- Mostly took this trade because I was seeing weakness at PM low and was leaning short bias because of yesterdays FOMC meeting where JP said "it is very premature to be thinking about a pivot"
- Also was showing weakness on the previous higher low
- Probably took profits too quick on this trade, as I took it before it even reached the previous low, but I'm not upset because it was my first options trade and I wanted to get a win to boost my confidence
FIX: As usual, hold winners (or at least a partial) to increase R/R (something I always struggle with)
Trade #2 - Long 3 Call Options @ trendbreak retest (Trend Reversal)
Grade: B+
- I would say this was the better of the 2 trades today due to the 'weak' weakness of the sell off (I think most people expected a very bloody day today as it was the first day of the 'Fed-Killed' Bear Market Rally we've been in since mid Oct 2022
- This trade was good because I waited for the trend to break and went long on the retest and scaled out into the push to vwap
- Again holding this trade would have made me more money but I likely would have panic sold as it retested my entry if I didn't sell into the first push (even though I was never really red on this trade and wouldn't have been even if I held)
FIX: Maybe sell 2 of 3 contracts into the vwap push and hold partial but I was mostly looking for a scalp so all in all I'm happy with this scalp trade
Takeaways: You don't need to catch big moves to make money (especially since I suck at holding)
Instead, if I'm confident in a quick move like I was on this trade, I should be taking a trade like this with bigger size and taking profits quickly to limit my market exposure/risk
Easy Money:
Maybe the 5min trendbreak into a previously drawn supply zone (on the /MES) (I just drew it on the SPY now for the Easy Money section)
OR
The last lower high into the supply zone
Overall though I would say today there wasn't a real Easy Money set up
