Option Day Trading SPY and TSLA: 3/13/23

 

My Daily Process for Trading SPY and TSLA Options 

DAY GOALS

• Focus on Intraday System Pattern A-C. 
• Pattern A: reaction zone crossovers for an RZ reject or RZ bounce
• Pattern B: key levels for a KL reject or KL bounce.
• Pattern C: RZ breaks (only on clear long-time duration formations)
• Do not trade anything else.
• Keep position size small.
• Plan for the clear setups ONLY!
• Patience is the key to solid entries and to maintaining low-stress levels.
• Fewer trades with more confidence in the trades I act on.
• Focus on SPY and TSLA options ONLY!
• Time to simplify the process and improve/reach the next level.

PRE-MARKET PLANS

Market News

• The Fed has had a closed-door emergency meeting to discuss the SVB bank failure. As a result, the Fed and Treasury have separately said they would use emergency lending authorities to make more funds available to meet demands for bank withdrawals as an additional effort to prevent runs on other banks.
• They designated SVB and Signature Bank as a systemic risk to the financial system, which gives regulators the flexibility to guarantee uninsured deposits.
• Will see how the market wants to respond to these. 
• Will wait, prep the levels, and see what the market wants to do.

SPY

• For today, I have these levels marked: 
• Reaction Zones:
• 388 (yellow)-will wait for the cross-over for an RZ bounce.
• 385 (yellow)-crossover is already in play. Will wait for the retest and RZ rejection.

• Key Levels:
• 380 (thick red/white lines)-bounce already happened here, so it could still be in play, but the market might shift, and this might become a new RZ to plan mid-day today.
• 378.50 (thick/red white lines)- another solid key level I marked for extra preparation for an RZ bounce.
• 390 (thick red/white lines)- possible KL reject here.
• 394 (thick red/white lines)- possible KL reject here in preparation for extra movement.

TSLA

• For today, I have these levels marked: 
• Reaction Zones:
• 172 (yellow)- wait for the cross-over event for an RZ bounce.
• 168.50 (yellow)- crossover has already occurred, so wait for an RZ reject.
• Key Levels:
• 179 (thick red/white lines)- will wait for a KL reject around here
• 162 (thick red/white lines) will wait for a KL bounce here.

RAW TRADING NOTES

• Damn, I did not get filled with my KL bounce entry on SPY. I thought I did, but it was just my price alert. Had my order placed to get filled at 4.80, but now 5.50s. Will wait on the next opportunity no sense in chasing...might get another chance at it lower.
• TSLA is also getting really close to the marked KL bounce area.
• Nice bounce; too bad I was not in it.
• Got in at the RZ retest... let's see...
• Well, shit messed up...I had profits and did not take them, and boom, again, I sold at a more significant loss because I wanted more....still creeps up on me.
• I think this happened because I felt FOMO of missing the bounce play. I was right there! 
• In on the SPY RZ cross-over at 385....sold for decent profits.
• In on TSLA, RZ bounce sold little gains...
• It seems like I missed the best opportunity today...slowly chipped away at losses. Need to wait for another setup
• It seems like I let circumstances affect me too much today. If I didn't miss my entry, I wouldn't have wanted more and then wouldn't have held longer, creating a more significant loss than usual;....all the other trades were decent, nothing huge, but that's how it goes sometimes.
• It is days like these that matter the most for traders. How well can you manage your discipline? How well can you stick to your plans? 
• It seems like TSLA will have a cross-over to the downside, so we will wait for the RZ to reject
• It seems like RZ breaks are coming on deck soon, but I am unsure if I will take them since the time aspect is too short. A better play would be to wait for the retest.
• The most crucial thing to remember from today is that I was 100% dead on with my plans today, but I failed to execute well and let my behavior muddy the water on my performance today.
• Got in at the upper RZ reject on SPY...should have just waited on the KL reject. Added more as it approached the key level...sold for minuscule profits as I executed terribly here...
• Itching to trade but having difficulty staying patient enough.
• slowly eating away at losses...
• Today feels like the most challenging day in a long time. But, if I can come out of this not financially and psychologically messed up, I'm making progress.
• Got back in at the SPY 390 KL for the KL reject and made back all losses today up a massive $4.89. This will likely keep going the way I want, but I don't care today was a tough day, and I am ok just getting out of today alive. 
• I was off today and will likely keep being off...the one trade I probably needed to stay in was this one, but I hit my limit. So will take a break, but most likely will be done today and start fresh tomorrow.
• Yup, I left soo much on the table...I couldn't be patient enough to wait for the KL. I failed to trust in my plans today. VERY CLEAR! I was in at 3.81, then sold at 4.14. Now it is at 4.70.
• Serves me right for not sticking to my plan. 
• Serves me right for not being patient.
• It seems like the best plays were the KLs today. Fumbled it today.
• It feels like what I am experiencing today, both performance/behaviorally-wise, is similar to a regression to the mean type of experience.
• by natural behavior, everything is telling me to screw up today. But I am determined to actively change this, so to move my mean in the direction I need and want must make following my plan the new norm, and everything will shift in the direction I need and want.
• I think this is why today feels like the most challenging day because I am fighting hard to not regress to the mean. Interesting...this is precisely why I am journaling. Revelations like this will never surface if you don't look or are willing to dig deeper.
• SPY wants to consolidate right here at 390 for a possible breakout. Will wait for the retest if it does. Seems like that is the only play worthwhile right now.
• Well took the SPY 387 RZ breakdown and excellent entry and nice exit, but a tiny move...executed perfectly.
• It seems the markets will not do much more today, so calling for today.
• Of course, the RZ breaks the second time nicely when I am not in it. Oh, well done now. Will be better prepared tomorrow.

POST REVIEW

• Today was tough.
• I missed the ideal entries, which tends to mess up my mindset and can cause my behavior to be variable.
•  Need to be aware and keep this in check.
• I fought hard against the natural regression today but was extremely satisfied with not having significant losses and being green today. This type of adversity is expected if you want to grow.
• It is clear to get to the next phase, I must follow my plan more consistently to increase my mean performance.
• ultimately allowing me to shift my "regression pattern" in the direction that allows me to grow and better my trading,
• A new goal for tomorrow is to actively challenge my regression pattern to only trade my plan. This will assist with being more consistent behaviorally when things do not go as expected.
• Overall, tough day, but satisfied.
• Also, I feel somewhat validated that my decision to upgrade journaling to this level of transparency pays off by revealing additional hidden aspects that can fuel growth or possibly accelerate my understanding.
• looking forward to revealing more aspects.