Option Day Trading SPY and TSLA: 3/15/23

 

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.
• Actively challenge my regression pattern to ONLY trade my plan.

PRE-MARKET PLANS

Market News

• Looks like we have PPI and Retail Sales data coming in today at 5:30am PST.
• Let's see which way the market wants to turn!

SPY

• For today, I have these levels marked: 
• Reaction Zones:
• 390 (yellow)-we already have the RZ cross-over pre-market,  so possibly waiting for the RZ rejection.
• 388 (yellow)-we already have the RZ cross-over pre-market,  so possibly waiting for the RZ rejection.
• NOTE: this is the first time I have seen three reaction zones within the Key Level area. More pivot points to determine market direction.
• 385 (yellow)-wait for the RZ cross-over for an RZ reject or a bounce retest.

• Key Levels:
• 394 (thick red/white lines)- wait for the KL reject.
• 380 (thick/red, white lines)- wait for the KL bounce.
• 378.50 (thick red/white lines)- another zone with much support. If 380 doesn't have the support needed for a bounce, most likely, this KL will.

TSLA

• For today, I have these levels marked: 
• Reaction Zones:
• 183.50 (yellow)- we already had the cross-over, so we need to wait for the RZ reject.
• 180 (yellow)- wait for the cross-over and RZ reject.
• Key Levels:
• 186 (thick red/white lines)- wait for the KL reject.
• 190 (thick red/white lines)- if 186 doesn't provide enough resistance, most likely, this level will.
• 170.50 (thick red, white lines)-wait for the KL bounce.
• 162 (thick red, white lines)-wait for the KL bounce.

RAW TRADING NOTES

• Well had the 388 RZ reject coming on deck for SPY. Was really close to pushing the button but didn't and missed the opportunity. I wanted it a bit higher.  
• I was about to get my put contracts at 3.30, now 3.90. So close, on the right track.
• Going to be patient here and see if we can get my entry.
• Nice got my entry. Let's see how this plays out!
• haha got nervous...still holding up. Just took a single.
• Price action will probably do what I want now...
• Looks like today I will be fighting against the regression of selling too soon, and the thoughts of going bigger and getting what I'm owed should resurface.
• I'm aware, and the best thing to do is probably to sit and wait for another entry according to my plans. THE ONLY WAY TO MOVE FORWARD!
• If this RZ on SPY breaks above, I will wait for the RZ bounce; if it Rejects, I will play a possible RZ bounce at the 385-384 RZ.
• TSLA looking like it might have the RZ cross-over event soon.
• Nice RZ rejection on SPY...sucks I couldn't have held, but nice to see my plans playing out.
• Got in SPY for the 385 RZ bounce.
• again, slow and choppy...very hard to hold. Damn, as soon as I sold, it goes!!!!
• Got in at 3.26 and sold at 3.38. Now 3.80, literally seconds after.
• I've been here and done this soo many times.
• The way I used to move forward was to let this stay with me, and then on my next trade/opportunity, I decide to take a more prominent position size, only to take a realistic loss percentage-wise, and it usually wipes out all singles up to that point.
• I WILL NOT REVERT TO THIS.
• I must fight against this behavioral regression. To change this, I must divert the energy from what happened and how it's influencing me to repeat behavioral cycles and regression to the mean schemes to something more beneficial to my growth/development to get out of this cycle. 
• And this is to believe in your ability to move past and move on by continually focusing on the goal/growth.
• NOTE: I will go into more detail on these two terms in my journal. I need to formalize and work some things out to see them clearly.
• It looks like the market wants to operate in a very tight range now. Extreme patience is needed.
• TSLA cross-over is setting up...waiting to strike.
• Well felt great going into the trade, but I messed it up. I averaged my position, and it just slowly kept grinding higher... will probably be right on the trade, but I should have never averaged. My fault. Damn,
• Was up about $100 on the day, now down $-293.00. So much for being disciplined. 
• #1 should have never averaged down, but I knew the risks,
• #2 should have cut sooner when it was continuously fighting me.
• I knew I would have to battle this urge, and it creeps up on me. 
• Got in another SPY rejection...made another single.
• Well, doing bigger position sizes doesn't happen anymore, but now shifted this to averaging down, which is like taking a bigger size. Just funny how it transforms like that.
• I think I just wanted it so bad (been missing trades today) that I needed it to work out, which led me to take another position.
• Also, I did not want to be wrong.
• I might be able to do one more play, but I need to be patient and see what sets up. It's easy to be frustrated and emotional and want to make up for the losses right now.
• Small quick entry on TSLA reject...was right on this, just off on the timing...sold too soon.
• Getting pretty pissed that TSLA is rejecting the RZ now.
•  I was in it but now stuck just watching it. 
• I think what frustrates me the most today is that the stock does not move as soon as I get in. Instead, it just hovers and wares down my patience.
• Nope. Okay, done today.
• Was doing ok, but then everything fell apart. Wanted it too much today and warped my mind trying to make the market do what I wanted. Need to just be completely unbiased, and the moment price action goes against my initial plan/entry, I must cut.
• I failed to cut when in those moments. Would have still lost but would have still lost less.
• No more averaging. This continues to be a negative factor affecting my growth.
• Man, losses like this suck so much.
• Need to use this to get better/grow.
• Need to Add DO NOT AVERAGE POSITIONS on tomorrow's goals.
• Stepping back and looking at my entries on TSLA, it is clear I was trying to force a trade. 
• I should have modified the reaction zones since they were slightly off. 
• I should not have taken the trade. 
• I was trying to force it, and it was not clear enough to get in.
• It does not look like anything else will be set up today...frustrating. But tomorrow is another day.
• Tried one more time for a SPY RZ Break...was profitable for a while, but then I wanted to hold, and what do you know, out for another loss.
• Damn, not winning today. Sucks.
• One Big loss, a bunch of small wins and small losses. Down today. The market finds ways to humble you really fast.
• But there is no one to blame but me. I either get better and find a way to grow, or I get worse or repeat the same mistakes.
• Moving forward... tomorrow is another day.
• Ah, well, too early on my last few plays....figures. But need to learn.

POST REVIEW

• Another lesson day.
• Was feeling good in the morning but then started missing plays and selling too soon (negative triggers for me)
• This led to me "wanting more," altering my reality and trying to force the market the way I wanted.
• "wanting more" altered my behavior and resulted in my failure today.
• Made me want to keep trading, so I most certainly over-traded too.
• Need to include the following in tomorrow's goals:
• Do not average down on entries.
• Do not give in to negative triggers.
• It seems like this is the catalyst that takes me down the behavioral cycle I need to escape.
• With that said, what are my positive triggers?
• I must focus on these to move into a different state/cycle.
• Focus on positive triggers.
• Overall, something seems rooted in my psychology, negating positive efforts. 
• to move forward must exit this cycle I seem to put myself in.