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Option Day Trading SPY and TSLA: 3/20/23

 

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. DO NOT AVERAGE DOWN ON ENTRIES!
  • Plan for the clear setups ONLY!
  • Patience is the key to solid entries and to maintaining low-stress levels.
  • Fewer trades with more confidence.
  • 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.
  • Do not give in to negative triggers.
  • FOCUS ON POSITIVE TRIGGERS.

PRE-MARKET PLANS

Market News

  • It looks like we have no high-impact news today. Instead, all eyes await the FED's rate decision on Wednesday. 
    • Let's see what the market wants to do in the meantime!

SPY

  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 392ish (yellow)- wait for the cross-over for the RZ bounce or possible RZ breakout if the time duration/volume looks good enough.
      • 388.50ish (yellow)-wait for the cross-over for the RZ rejection. 
    • Key Levels:
      • 393.50 (thick red/white lines)- wait for the KL reject, but it can possibly consolidate near this and continue. If this level doesn't have enough resistance, I like 396 for the KL reject entry.
      • 384 (thick/red, white lines)- wait for the KL bounce.


TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 180.50 (yellow)- wait for a cross-over for the RZ bounce, or it might just be a decent RZ break play later in the day.
      • 177.50 (yellow)- wait for the cross-over for the RZ reject.
    • Key Levels:
      • 184.00 (thick red/white lines)- wait for the KL reject. 
      • 175.00 (thick red/white lines)- wait for the KL bounce.



RAW TRADING NOTES

  • TSLA cross-over event occurred. Now just need to be patient and wait for the retest of the RZ.
  • If no retest is possible, then wait for KL bounce entry.
  • Got in TSLA retest.
  • Haha, it never fails as soon as I get in fighting my risk zone. It will not be easy.
    • Sold for small gains on the push down...seems like buyers are pretty strong right now. Staying in the positive cycle right now. 
    • Perfect exit. It was a better call entry on the premarket lows retests but not my pattern.
    • If the thought of even holding longer crept into my mind, this would have been a losing trade. Perfect execution was needed here to make money.
  • TSLA RZ break looking nice now
    • got in the RZ break and sold on the nice push-up.
    • staying positive!!!
    • probably selling too soon, but ok with it because KL rejects zone is coming up soon.
    • haha needed to give it more time, crazy spike/bounce
  • Also, an RZ bounce possibility on TSLA now too.
  • Whoa, a roller coaster on TSLA.
    • got in at the KL reject at 184.
    • Held to 186...was about to take a loss, then decided to average at the new KL. I accepted the risk.
    • made back some and ended a little green on the trade overall.
    • Will never do this again!! I did because it was another critical level, so I operated within a grey zone in my strategy.
    • I sold my whole position once it got down to the KL because it would probably bounce there.
    • I think I got lucky here...I do not want to repeat this.
    • TSLA crazy strength...
  • Possible re-entry into the TSLA 186 KL for a retest, but after the roller coaster ride, might hold off for a bit
  • TSLA RZ break was probably the best play of the day...solid winner if held to 186!
  • SPY KL coming up...not sure if I like the price action kinda choppy
  • Got in....testing my risk level again. Never easy.
    • sold on a pushdown. Just getting out.
    • again, it will probably need more time to work, but I did not like the price action today as it makes it extremely hard to manage risk.
  • I think I'm going to be done for today. 
    • I hit my goals.
    • Choppy action.
    • Stayed on the behavioral cycle I needed. 
  • Performed okay today.

POST REVIEW

  • Adhered to my trading plans today. 
  • Was able to successfully remain in a positive behavior cycle.
  • I took solid trades, but one was in a gray zone.
    • I could have taken a quick loss but was forced to decide if I wanted to hold my position until the other KL resistance area. I chose to do it and averaged my position down. I had a good reason to since it was in another KL area, and the probability of it rejecting at this level was most likely on my side this time. However, it was too risky, and I do not want to repeat this.
    • I think, in some circumstances could be left to good judgment, but it is riskier than I want it to be.
  • Happy with my behavior trading today, but my performance on risk management could have been better.
    • I set myself up for additional risk and want to eliminate this or let this happen on rare occasions. Do not want this to be a habit.
  • Overall, the markets today seem to be highly choppy/grindy.
  • TSLA had a nice breakout/spike, though!






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