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Option Day Trading SPY and TSLA: 3/28/23

 

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 bounce. Or a spike into RZ for an RZ reject/Panic into RZ for an 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 CB Consumer Confidence as the high-impact news today at 7:00am PST.
    • Missed trading on Monday, but everything seemed to go sideways.
    • Let's see where the market wants to go!

SPY

  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 397.50sh (yellow)- wait for the spike up to test an RZ reject; otherwise, wait for the RZ cross-over for the RZ bounce.
      • 395.50ish (yellow)- at this level, so wait for cross-over for RZ rejection. 
    • Key Levels:
      • 399 (thick red/white lines)- wait for the KL reject. 
      • 394 (thick/red, white lines)- wait for the KL bounce. 


TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 193.50ish (yellow)- wait for the cross-over for the RZ bounce. Mid-range here, so I don't like an RZ reject if there is a morning spike.
      • 190is (yellow)- could be a decent RZ bounce if we panic fast enough; otherwise, 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 RZ bounce, had a nice little profit, decided to hold, and was quickly taken away.
    • I kept it too long, and it was clear it would not return, so I needed to cut it. 
    • Price action did not give me much time to mitigate losses as it dropped quickly.
    • Was worth a shot but just my luck!
    • Nice red trade to start off the week! Never easy.
  • Well, TSLA now setting up for the 190 RZ reject.
  • Tried the RZ break on TSLA and needed to cut.
  • Today, my losses are adding up!
  • Going to step back and cool off/reset for a bit.
  • It looks like today will most likely be a crappy day.
  • Got in on the 190 TSLA RZ reject...didn't quite hit the level, so I got in very close to it...fighting...
  • Well sold on the nice push down...made back most of my losses...
    • I put my order in, and it took a while to fill....probably would have been green on the day if it filled faster...
  • I'm kind of frustrated with today.
  • The only other plays that are worthwhile are the KL bounce plays...
  • Need to stay patient. 
  • Need to focus on positive triggers.
  • Thinking back on the TSLA RZ break trade, I probably should have never taken that trade.
    • 1. did not wait for the break
    • 2. did not have enough time duration built into it.
  • So the one loss today was just a regular loss, pattern/setup didn't work. The other loss was that I forced it too soon, which was my issue.
  • It sucks to still be red today...but I need to be patient.
    • markets seem slow-moving today...
  • Got in 395.50 RZ reject on SPY.
  • Jeez...I was holding it, then decided to take small profits, and the moment I got out was when it moved further down!! HAHA, the market wants me to mess up today! 
    • I need to stay focused on positive triggers to not let this environment trick me into doing anything stupid!
  • Still red on the day...-$18. 
  • Besides the KLs and the possible TSLA RZ breakdown, nothing else is on deck.
    • if things do not move soon, I will call it a day and move on.
  • Well got in at the TSLA break.
    • Pathetic price action.
    • Probably selling too soon but expected more of a push down on the initial break.
    • Price action today is prolonged and noneventful.
  • Yup, a very tough market today.
  • And 100% dead on with TSLA Break.
    • I needed to give it way more time here but solid plan.
    • This RZ break and the RZ reject are probably the best plays today.
  • Going to start fresh tomorrow.
  • Couldn't resist getting in on the KL bounce for TSLA...went lower and just took a small scalp.... it likely keeps going the way I want, but I clearly have no patience for today's price action...
  • Yup, bouncing now.
  • That's 2 trades that were 100% dead on, but I could not have waited.
    • I want to repeat this.
    • This is a  positive trigger,
    • Allow for this confidence to build and let repetition happen.
  • I was trying to close out, and no, everything is hitting my levels trying one more for the SPY KL bounce...just had a feeling this would go against me because I have been dead on the last few and would just figure this one will be a loss.
    • giving it time, and it is slow...
    • Now that I am ready and giving stuff time not going to do it
    • getting frustrated
    • jeez not asking for a lot here just want a little bounce! Want nothing, and seems like will not get it!
  • Just my luck got in too soon... let's see if I can at least get out breakeven.
    • figure now the contracts won't even move!
    • SPY price is above where I purchased my contracts, and my contracts are worth less! HA!
  • Out pretty much breakeven.
  • Done now.
  • Extremely frustrating!

POST REVIEW

  • Well, I was excited to trade today, but that quickly evaporated as I needed to take a loss on my first trade of the day.
  • Tried to force another and probably should not have taken it but quickly regrouped, made back losses, and managed to be green on the day.
  • It seems like I needed a warm-up from the long weekend, and the markets did not help either with their price action.
  • EXTREMELY FRUSTRATING DAY.
    • It seems like I needed much more patience today, but I was on the right track.
    • Kinda felt off since coming back from the long weekend
    • Other environmental factors were at play today, contributing to the frustration.
  • Will start fresh tomorrow!






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