My Daily Process for Trading SPY and TSLA Options
DAY GOALS & RULES
- 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
- FOCUS ON ADAPTING TO PRICE ACTION
- FOCS ON (1) CONTRACT FOR PLAN OPTIMIZATION.
- FOCUS ON THE ONE PLAN THAT CAN PROPEL ME FORWARD DAILY.
- GIVE PLANS THE BENEFIT OF THE DOUBT AND LET THEM PLAY OUT.
Note: I am changing my daily routine. I will not post premarket; I will only post at the end of my trading day. I have been getting up at 4am PST to start my day but will now get up at 5am daily. Making some changes to hopefully get me on a better routine. Also, I will be decreasing my position size to 1 contract ($100-$200) to better manage my trades. Quite frankly, I am pissed with not just my performance but the circumstances surrounding when I do increase position size and that my average gains are just not good enough as I rarely capture the gains I need to propel myself forward. So going to use this new schedule to make improvements for the better. Getting more rest, doing less busy work, decreasing risk so I can be more involved in the moves I want to be. We will go from there.
PRE-MARKET PLANS
Market News
- It looks like we have no high-impact news today.
- Let's just see where the markets want to go today!
- We have core inflation tomorrow, so volatility might be around the corner!
- For today, I have these levels marked:
- Reaction Zones:
- 410.80ish (yellow zone)- could have a spike for possible RZ reject.
- 409.50ish (yellow zone)- near the zone right now. Let's see if this will hold or have a cross-over event for an RZ reject entry. This is also a major KL from yesterday and the close from yesterday, so a high convergence area.
- Key Levels:
- 412.50 (thick red dashed lines)- wait for the KL reject.
- 408.50 (thick red dashed lines)- wait for the KL bounce.
TSLA
- For today, I have these levels marked:
- Reaction Zones:
- 185ish (yellow zone)- near the zone right now. Wait for the panic for a possible RZ bounce. I like this area since it has a major KL and is close.
- 188ish (yellow zone)- waif for the cross-over to enter for the RZ bounce.
- Key Levels:
- 190.00 (thick red dashed lines)- wait for the KL reject.
- 182.50 (thick red dashed lines)- wait for the KL bounce.
RAW TRADING NOTES & COMMENTARY
- Looks like we had a solid bounce day yesterday
- We are definitely up-trending now within the consolidation zone.
- Both TSLA and SPY seem to be entering an uptrend pattern... let us see if it holds true!
- Keep an eye out for variable change instances...
- Got in on the pullback into the 409.50 RZ for the bounce.
- stop loss is 409.40
- exit is the test of the 410.80 RZ
- We had the same move on TSLA, too but chose SPY.
- Had a nice little pop and was thinking about taking profits but decided to hold now, fighting near the entry again/my stop....never easy!
- If we can hold above 410 will adjust for a new stop.
- fighting 410 now...
- Jeez, where has all the strength gone from yesterday...kinda annoying. Still has not hit my stop but getting me antsy.
- TSLA is holding near the highs, but SPY still fighting the lows...annoying.
- Came back down very close to stop. Let's see if it can bounce; very annoying. I might have a variable change here, so I might switch too.
- Finally, a nice 5min green candle... let's see if this candle holds...
- Moving stop loss to 409.50 now.
- As a side note, the more extended/swing trading ideas seem to yield the most % gains....if I took the KL idea yesterday and held it all today, it would have been a massive gain. So much opportunity out there.
- Annoying needed to stop out. Switched and bought puts.
- if it can't stay red, I will get out.
- 409.75 is my stop
- Jeez, now that I switched, we are starting to move sideways and have more small green candles.
- about to take another loss
- stopped out...annnoying!!!!!!!
- Best play needed to have taken my profit from the beginning.
- The best setups now are the intraday breakout trades at 410.20 for SPY and TSLA 188 RZ break.
- got back in SPY calls.
- new stop is when it can't hold green anymore 409.60ish
- Got out for another loss.
- Switched to puts.
- Stop is at 409.60...exit 408.50
- wow, just so choppy today...should have been extra conservative and taken profits on my initial trade....and avoided all of this stupid chop.
- well, finally, in the right mindset to take advantage of longer-term moves and figures that the market is not moving at all.
- extreme choppiness and minimal trading range...
- After this trade, I think I am done.
- it would not surprise me that the moment I move on and call it quits, the market will finally pick a direction.
- got out and took the loss.
- Should have sold the panic before on SPY too,...I guess I did not learn my lesson but wanted my exit plans to hit, so I stayed strong.
- Got in TSLA for the Intraday break.
- exit the 190 KL
- been here before on TSLA and took profits only for it to keep going....less let's see if it is damned if I do or a damned if I don't type of day.....or will it work out according to plan?
- Will see. SL 188.25.
- Let's see...I am so ready to give winners time... let's see if the markets will be willing!?!
- I would bet I get screwed just because I am in it. But let's see! I'm testing... small position.
- Like I said, been here many times before...either I was in it and sold too soon, or I had the plan ready and didn't execute it.
- TSLA RZ cross-over event, too...possible re-entry on the retest.
- looking like a damned-if-I-do scenario right now...lol having a pullback but holding...so it might still work out...
- added on the RZ re-test.
- SL 188.70...will be done if this hits.
- This one play can wipe out all these small losses and then some if it works according to plan.
- trying to trust my plan here....but the question is, will it be on the winning side today or the losing side of my trade performance.
- hard to be optimistic here...
- testing my stop now...lol...figures...
- DAMNED IF I DO DAY!!!
- YAY!
- Just what I need.
- Gave this pattern the benefit of the doubt, which still failed me. I was often unprepared for this pattern, and today was a day that it didn't work out.
- more significant red day...could have taken profits twice, but I wanted to at least see my plans work...
- If I performed/acted how I usually do, it would probably have been a small green day or near breakeven because I would have most likely taken those profits when they were available.
- The only thing that did not make this absolutely horrible is that I kept small position sizing...the only positive.
- extraordinarily annoyed and frustrated today.
- I was in two solid plays.
- I could have taken profits on both because both hit the halfway mark to my plan exits...annoying.
- good thing I cut losses on TSLA..just fell through the RZ
- I definitely wanted more today.
- just sucks because wanting more was merely wanting my plans to work when I am in it. It has no problem hitting them when I'm not.....
- just kind of discouraging since I was ready and willing...
- It's days like this that I really have a hard time because it is hard to get better from today this... it either it is, or it's not.
- will it be a day I take profits too soon and let my plans hit, or will it be a day I don't get in and lets my plans get hit, or will it be a day I am ready for my plans to be hit only for everything to fail or is it a day where everything works?
- I mean, whenever I am ready to give my strategy the benefit of the doubt, this happens...and it always seems to be at the wrong time. So when I never give my strategy the benefit of the doubt, I always cut myself short either by not playing or taking profits too soon.
- My strategy already has a decent win %, but I am still failing.
- Is it really that simple to give my strategy the benefit all the time to really fully optimize it?
- no better time to test than right now (using the smallest position sizes)
- just sucks can't really do much more today...
- price action is kind of all over the place today...
POST REVIEW
- Well, very frustrating day.
- I think I performed well and adhered to stops, but nothing worked.
- I had opportunities to make losses back, but I really wanted to see my plans through.
- If it were my average days, I would have taken those gains...but I have been there and done that and wanted to at least capture more of the move.
- Very hard to pinpoint how to improve on days like these, but I think I can give my strategy the benefit of the doubt every day and at least be willing to let my plans play out.
- based on my performance, I usually don't, so let's see if this thinking helps.
- Moving forward will add
- GIVE PATTERNS THE BENEFIT OF THE DOUBT TO HIT EXITS.
- It hurt me today....but that is not always the case...
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