Key Takeaways | 8.10.2021 | Tuesday
- You shine in the first 15 minutes. Refine what you’re doing well at.
- Be ready to switch and play opposite side. Levels still apply.
- Must ensure liquidity in chosen contract.
- Must have faith in analysis & greater trend on larger time horizons.
- Must observe & gain insight into unique price action of each new issue you trade BEFORE trading.
- You must NEVER trade Carelessly. There is NO benefit to disregarding discipline.
- DO NOT CULTIVATE HABITS THAT WILL LEAD TO LONG TERM FAILURE.
- Do not cultivate the seeds of failure.
Mistakes | 8.10.2021 | Tuesday
- Peewee Paper Hands.
- Trading off 1m instead of 5m.
- Inappropriate trade style; Did not plan trade style.
- Did not familiarize yourself with price action & employ appropriate trade style accordingly.
- Did not ensure liquidity in contracts prior to trade.
- Did not protect 50% of profit.
- Chasing trade
- Followed external trade suggestion. Never do this.
Successes | 8.10.2021 | Tuesday
- Followed Game Plan
- Traded Levels
- Successfully executed first Scaling out Trade
- Executed Excellent, prescient analysis
- Did not let winner become loser
Activity Log | 8.10.2021 | Tue. | 7.07 hrs
- Game Planned: 8.10.2021
- Traded: 8.10.2021
- Studied: ITU Discord, SMB Capital
- Reviewed: 8.10.2021
- Refined: Data Journal (Game Plan Matrix)
Game planned & traded, was on voice with JR & Dragon for first time in a few months at least. Felt like I’m close to being able to keep up, & nearly aware enough to begin contributing analysis on par with JR. Much work to do still though. Played a trade out of FOMO & chased because JR suggested play & I didn’t want to miss (X: Us Steel). Opened first Swing position on Apple (two weeks out expiration) at JRs suggestion. Apple forming symmetrical triangle. First time opening swing with intent to swing & with profits I can afford to lose. Began executing trade review of day. Build Copy Paste Option Data Section into game plan so I can just transfer Greek data from TOS directly into game plan rather than having to enter manually. Spent remainder of day attempting to finish Trade review of day but was unable. Studied SMB trading video & caught up reading over different discord channels. Listened to Charles Schwab book for an hour or so over course of day while doing maintenance (not counting hours accumulated from audiobook listening).
Trade 1 (SNAP | $71.40 | 20.52%):
–Entered Because Snap was pushing up pre market & at open pushed above 79 supply level I’d charted out with significant volume. Entered 3 calls with intent to scale out 66% at next significant level
-Exited because underlying pushed into next level I’d charted & I’d placed limit order near the level to sell 66% of position -Trade 1 Mistakes: This was a clean trade. You traded the levels you planned
-Trade 1 Successes: You traded the levels you planned, you exited when you said you would and you successfully scaled out, a big win as this is the first scaling out trade you’ve ever done. You traded according to the scalp plan you had. You had a successful scaling out scalp. Fantastic Exit. Very pleased with this.
-The better trade would have been getting back in to play the downside between levels. You had the levels in place and they were respected to a T. Do not become rigid in your expectations for a move. Be flexible to change with the tide of the market. Levels apply both ways, If the trend changes, change with it. You can usually ride moves for one or two levels and that is ample price action to capitalize on. Other than that, based on what your plan was (to scalp) there is not much more that could have been done better on this trade. You placed the limit order almost perfectly at the top of the contract move that correlated with the level you were aiming to take profit at.
-Trade 1 Key Takeaways: You shine in the first 15 minutes. Continue refining what you’re doing well at. Trade with larger time frames justifying direction & giving you the wind at your back. You don’t need huge moves to profit. 20% is completely acceptable. First Trade employing scaling out strategy was a success
Trade 2 (SNAP | $60.70 | 34.89%):
-Entered Because This was the remaining contract from first trade. -Exited because Demand seemed to be faltering at massive supply level, I was up well enough on this trailer contract and wanted to protect profits
-Trade 2 Mistakes: This was a solid trade.
-Trade 2 Successes: Successfully executed first scale out trade & did well in this second part of trade: the remaining trailing contract section.
–The better trade would have been When you recognized that demand was faltering you should have been preparing to switch to playing puts. Your levels applied & were respected, this was the way forward to getting more out of this ‘Trade’ i.e. this stock that you’ve done your diligence on and were engaged with. As far as this trade, setting a level to sell into instead of a trailing stop might have been the better trade but considering this was my trailing contract a trailing stop was appropriate. Yes, I could’ve gotten a more out of the contract, but that’s just counting pennies. I exited in a reasonable, and protective way. I exited in a way that is sustainable, meaning that over the course of 100 trades like this the probability of profitability would be higher.
-Trade 2 Key Takeaways: Be ready to switch and play downside. Levels still apply & if market shifts be willing to shift with it. Trailing stop on trailing contract was a reasonably effective strategy, & logical. Perhaps being that this is still 33% of capital it would be best to have targets to be sold into rather than trailing stops.
Trade 3 (X | -$30.60 | -9.33%):
-Entered Because Saw break of level, got fomo wanted to be able to say I’d traded a stock JR recommended, then chased it. Knew that wind was at back, & criteria for entry weren’t completely horrible other than the fact that a massive level had just been surpassed on extraordinary volume.
-Exited because Didn’t want to give back anymore gains from earlier in day, panicked. Saw price breaking back below key level & assumed dump was imminent, didn’t want to give back anymore, assumed I’d bought into a blowing off top given the EXTREME volume on the candle of the breakout. wanted to cut losses. **
-Trade 3 Mistakes: Hesitated on Entry, Didn’t Trust Analysis, Ignored significance of larger trend, Bought Top Sold Bottom, PEEWEE PAPER HANDS, did not familiarize yourself with price action before trade, inappropriate trade style (Tried scalping what should have been day trade), Got shaken out watching 1m candles instead of 5m. Ignored 1m Volume Spike Did not check for Option Liquidity.Should not have been watching 1m candles. they should be for reference not for action. You hesitated on entry to this and waited until the push past what you knew was a significant supply level before entering, You should have entered BEFORE the break of the level. But even so, you could have anticipated that a pull back was likely considering the significance of the level that had just been overcome. Ignored significance of larger timeline pattern. this was a perfect flag on the hourly and you didn’t trust your analysis. You did not conduct thorough enough research of the stock before hand to familiarize yourself with how it moved & the time in which expected moves took to unfold. You went in on edge & not thoroughly prepared. Bought at a supper extended spot, not before major key level break. Also there had just been OBSCENE volume & you ignored this, this could have been indicative of a likely pullback imminent. In retrospect at every 50 cent level there was OBSCENE, 500% greater than average volume. Could have anticipated the significance of this level and had patience. Tried to scalp something that should have been day trade. Got IV crushed for sure on entry. Not sufficiently liquid contract market
-Trade 3 Successes: My analysis was spot on, my levels were nearly perfect, my sizing was healthy & reasonable. My execution negated all of these positives that I had going for me. I let emotions, fear cloud me and I had no faith in my analysis, which, once again proved to be spot on. |
–The better trade would have been Expecting a pullback & holding through it, respecting my levels, the ema’s, & the larger trend holding out for confirmation that the trend was changing. Waiting for CONFIRMATION that I was WRONG, HOLDING ON until there was confirmation. Confirmation of exit is as crucial as confirmation for entry. Volume in contracts had sparse liquidity. & I got shit entry, which was my own fault for buying after surge past significant level & IV juice
–Trade 3 Key Takeaways: Must familiarize myself with price action of a new stock before trading, Must ensure liquidity in contract. Must have faith in analysis & greater trend on larger time frames. Must implement appropriate trading style. Contracts were not respecting price action as well as other options have. Plus I got IV Juice filled, being that my entry was so late,. Should have considered that this would be a longer time horizon trade. Was expecting too much too fast, not considering this is a new sector for me, likely with new price action traits. |
Trade 4 (X | $4.70 | 2.87%):
-Entered Because Same entry as original X Trade
-Exited because Price was dropping considerably & was not willing to let winner become additional loser to add on to previous X Loss
–Trade 4 Mistakes: Trading off 1 minute instead of 5 minute. Inappropriate Trade Style. Not taking profit, not going in with adequate time horizon plan, not comfortable with price action of underlying. Not prepared to hold. When has it ever done me good to trade off 1 min. need to consider eliminating 1 min entirely.
-Trade 4 Successes: Protected downside, had healthy enough entry before re break of level, had trend in favor. | -The better trade would have been selling out at a more profitable point. You made every mistake in the book over the course of this full trade including Buying the top, selling the bottom, then on this trailing section holding and hoping.
-Trade 4 Key Takeaways: Must anticipate & employ appropriate trade style (Scalp vs Day trade) Must have some insight into price action of issue you’re trading before trading it. Must have faith in technical analysis, particularly when the strength of the trend is clearly in your favor. |
Trade 5 (SNAP | $0.70 | 0.33%):
-Entered Because SNAP was teetering on break of 80 level again, saw Rama mention it, & didn’t want to miss out. FOMO**
-Exited because Price quickly approaching entry zone. placed limit order to try to protect some profits, but got filled considerably lower **
-Trade 5 Mistakes: chasing trade. Did not protect 50% of profits. holding & hoping, FOMO. Should have been at least 30-40 profit. expected too much out of the move. got greedy & didn’t protect profits. -Trade 5 Successes: Protected “Profits” Did not let winner become loser at the very least.
-The better trade would have been getting out while I was ahead, having a trailing stop placed sooner. anticipating the resistance near the next dollar level & selling into the strength of the surge rather than holding, hoping & trailing. I was being greedy & trading sloppily, as I’d already walked away with a win and had profits to counter risk. This is a massive red flag. No matter how ahead you are you should never trade carelessly, as it contributes to cultivation of bad habits.
-Trade 5 Key Takeaways: Need to be more disciplined, even with smaller sized trades after profitable ones. There is no benefit to disregarding discipline. Even if it works out, it’s laying the foundation for failure in the future. If you cannot trade with meticulous precision, Do not Trade. Do not lay the foundation for failure. You need to protect profits when you have them. You were up at least $50 on this & did not capture any of it. Granted a degree of that was poor exit fill, but you could have anticipated that would happen, as it often does with trailing limit orders. No matter how ahead you are you should never trade carelessly, as it contributes to cultivation of bad habits.
End of Session Notes: The first 15 minutes are where you shine. Continue playing here for now, until you build up sufficient reserves to begin experimenting with new strategies.
8.10.2021 Statistics:
8.10.2021 Game Plan:
