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Option Day Trading SPY and TSLA: 3/24/23

 

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.
  • Do not give losers more time!
  • FOCUS ON POSITIVE TRIGGERS.

PRE-MARKET PLANS

Market News

  • It looks like we have Durable Goods MoM as the high-impact news today at 5:30am PST.
    • The markets are still trying to pick a direction. 
    • It seems more extended time frame strategies are ideal in this environment.

SPY

  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 395sh (yellow)- with big move days like yesterday, we can push up quickly and hit this RZ for a possible RZ reject. Otherwise, wait for the RZ cross-over for an RZ bounce.
      • 390.50ish (yellow)-cross-over occurring right now, so we will wait and see if we can get RZ rejection. We are very close to a KL, so not sure if we will have much downside. 
        • The trend lately is that we tend to have lots of strength when we look weak. So will be cautious today.
    • Key Levels:
      • 396 (thick red/white lines)- wait for the KL reject. The next level above is 397.50
      • 389 (thick/red, white lines)- wait for the KL bounce. Next level below 387.

TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 193ish (yellow)- wait for the cross-over for the RZ bounce, or if we push up fast, possible RZ reject.
      • 189is (yellow)- wait for the cross-over to the downside for the RZ reject.
    • Key Levels:
      • 196.50 thick red/white lines)- wait for the KL reject. 
      • 186 (thick red/white lines)- wait for the KL bounce.


RAW TRADING NOTES & COMMENTARY

  • Got in on TSLA 189 RZ bounce. Fast move down to this area. A bounce is likely...
    • got in a bit too soon.
    • I want to average down right now but I will not do it!
      • Would have worked out, unfortunately...lol
  • Got in SPY KL bounce too.
  • I didn't want to be in two trades simultaneously, but they were both setting up.
  • Getting nervous sold both for profits...very likely selling too soon on both, but it is not every day that I am in two trades simultaneously, so I'm playing it cautiously.
    • more risk
    • yup, my previous plans are playing out perfectly..lol. Left a ton on the table.
    • left about another 0.30 cents per contract on SPY...TSLA is not so much, kind of still bouncing around my entry, but another 0.10 cents per contract.
    • Jeez, now 0.60 cents per contract...roughly left an additional $240 on the table.
      • Before, this scenario would take me over the edge and put me in a negative cycle.
        •  My following trades would determine my fate and endless repetition of the cycle I have always seemed to be plagued with.
      • Now that I fully realize/am aware of this trigger, I can combat this and divert this to staying positive.
        • I am on the right track and want to continue to be on the right track.
        • I need to view these scenarios as being sufficient. To keep repeating this is to keep allowing these opportunities to exist.
      • Wanting more negates this; acknowledging this opportunity exists and knowing I was in it should further entice me to stay the course.
  • Wow, now almost $1 per contract on SPY and TSLA 0.25 cents.
  • This definitely is a boost to my confidence levels here.
    • on a side note, I am building confidence right now. Previously when this situation occurred, I would feel like I wasn't doing enough and felt like I missed opportunities and needed to do more/want more.
      • this would lead to a sense of urgency to get what I was owed or to recover the lost opportunity. It was a very much past-induced urgency. 
        • An urge to change the past to get those missed opportunities.
      • Now the urgency has shifted to be more future based with wanting to repeat the past, so positive events will likely occur,
        • An urge to repeat the past to continue to have those opportunities.
  • If I was not journaling to such the extent I am now with my blog etc., this realization would not have occurred so quickly or not even materialized.
  • Excited.
  • I could have entered with more retests, but I needed to watch for now.
  • Really want to see how SPY reacts at the 394.50 RZ for possible rejection.
  • TSLA might retest the RZ for an Intra-day break.
  • Nice got the TSLA RZ break
    • sold into a nice pushdown.
  • Will likely be done now. Its Friday. Solid week. 

POST REVIEW

  • Solid day today.
  • Confidence boosting.
  • Yes, I missed some extensions on some plays but more than happy to repeat these again if it means that I continue to operate in the better behavioral cycle and continue to be on the right track.
  • Need to have a similar week next week.
    • if everything goes similarly, I will consider incrementally increasing position sizes by one factor the following week.
    • It feels like I will be entering my growth phase soon enough.
  • Starting to really refine my strategy and make it robust enough to weather all storms.
  • Excited to do the weekly review this weekend in preparation for next week!







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