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.
PRE-MARKET PLANS
Market News
- It looks like we have Core Inflation Rate at 5:30am PST and FOMC minutes at 11:00am PST as the high-impact news today.
- Let's just see where the markets want to go today!
- For today, I have these levels marked:
- Reaction Zones:
- 411ish (yellow zone)- cross-over occurred with data drop. Wait for the RZ bounce!
- 409ish (yellow zone)- far away now. Need to see how price action is if it comes back to hear but just on watch now.
- Key Levels:
- 413.15 (thick red dashed lines)- wait for the KL reject.
- 412.50 (thick red dashed lines)- previous day KL now possible Intraday RZ. Need to see how price action reacts around here.
- 408.50 (thick red dashed lines)- wait for the KL bounce.
TSLA
- For today, I have these levels marked:
- Reaction Zones:
- 189ish (yellow zone)- cross-over occurred already. Wait for the panic to the RZ.
- 186ish (yellow zone)- far away will need to see how price action is when it gets closer.
- Key Levels:
- 192.50 (thick red dashed lines)- wait for the KL reject.
- 190 (thick red dashed lines)- previous KL from the previous day. Starting to form an intraday RZ. On watch for now.
- 185.00 (thick red dashed lines)- wait for the KL reject.
RAW TRADING NOTES & COMMENTARY
- Big move on the inflation data.
- Need to focus on patience and waiting for the setups.
- Got in on the quick push down to the TSLA 189 RZ.
- Stop loss 189.
- Also got in SPY 411 RZ...stop loss 411
- both at stop loss zones....never easy.
- I averaged down on both...I think these moves were highly exaggerated.
- modifying my exits now.
- 100% ready for my plans, and we get weird action today...figures...but I adapted to it and modified it accordingly. Kind of risky, but I see the flow better even though it is a bit off than usual...
- out of TSLA, hit my stop. Focusing on SPY now.
- I might add another contract at RZ since it had a cross-over event.
- added one more
- New stop for SPY 411.
- exit is a test of the intraday RZ 412.50ish
- Testing my stop now.
- Just funny how I am so patient now, and now it seems like patience is a hindrance.....
- Today, I stumbled into my old execution method of the slow small build, designed for choppiness or building into position...might be a better match for my strategy too.
- always learning!
- it seems like it will be tough today, but I got my stops. If it hits, it hits...sucks, but I think I am refining my strategy for the better, even though it is not performing right now.
- I must remain consistent in this style to capture those when they arrive again...
- cut losses, spy...unfortunate.
- Bougtht TSLA at the 186ish RZ
- Added at the KL...stop loss below KL 185.
- kind of aberrant price action... a shitty day to be so patient...
- losses starting to add up again...
- I'm taking my stops but trying to give everything the benefit of the doubt, and it looks like I'm just going to run into crap again today. Damned if I do, damned if I don't again...
- small position sizes are helping me stay sane, though...
- might get resistance on TSLA at the 186 RZ but let's see how price action reacts.
- Testing my stop loss again....jeez
- what a time to be working on patience!
- stop loss hit.
- down decently on the day now.
- just nothing worked today. Figures.
- taking me to my limits, and when I cave, everything will be working back when I Itrade scared again... I'm done reliving these cycles over and over again.
- Going to stay on this path. But for now, need to just wait for a better setup.
- clearly, everything I planned is useless today.
- TSLA just failing...PATHETIC!
- Got in SPY 409ish RZ calls for the RZ bounce.
- 408.95 stop loss
- added at SPY 408.50 KL
- here we go again.
- new stop at 408.45
- No buyers whatsoever... should have just taken the variable changes and bought puts...but for the market, it has to bounce sometime.
- hitting stop again...I must be the unluckiest trader to have ever existed.
- tempted now to buy puts, but I know the moment I do, the bottom will be in...so scared now to do anything.
- jeez seems like I sold at the exact bottom!
- I will wait for the retest to get in one more time.
- well, we had the crossover at the lower RZ, so we got in for the reject...
- I switched, so there is a good chance everything will bounce to the highs now...LOL.
- The trend is clearly down, so shorting on a pop-up at least...but it makes me so nervous...
- gonna hit my stop again.
- This is my last trade...
- got out...what a shitty day. Absolutely no wins.
- all losses...gave it everything I had today.
- and still failed.
- the moment I switched was the moment it bottomed.
- this psychological issue is such a monumental issue for me.
- probably take a break from trading and not look at anything the rest of the day.
- The harder I try, the harder it gets.
- it seems like the only play today was the 408.50 KL bounce. Everything else failed...
- Well, after stepping away...this still hurts.
- I could not have traded today but wouldn't have learned anything. What I need is further refinement.
POST REVIEW
- Well, I had an excellent mindset today, but nothing worked for me.
- Yes, I could chalk today up to overtrading, but I did all the right plays; nothing worked.
- After stepping away and looking back on things 100% my doing.
- nothing worked, which happens but just very unlucky, to be honest.
- To have made this day better, simplify my setups more.
- only trade the KL rejects, KL bounces, and the RZ cross-over reject or RZ cross-over bounce. This would yield today alone a 2/3 win %.
- If I simplify my strategy to this, this might be better.
- yes, I will eliminate a lot of noise and sometimes opportunity but hopefully will get more consistency and less stress.
- I don't like it too much, but I need to do less to make it easier...I am so tired of getting the short end of everything.
- So, moving forward only looking to trade 4 setups. Kls (2) and RZ cross-overs (2). If I don't have these events triggered, then no trade!
- On days like these, I have many options, but when they all fail, I lose too much. This could be a rare event (most likely), but I don't care anymore. Today was a loss, and I need to refine my strategy more.
- I thought I would need more time to recoup mentally, but I recovered faster today.
- Will trade tomorrow.
- Hopefully, some setups...and some wins...
Simplified day goals for tomorrow:
- Focus on Intraday System Patterns A & B.
- Pattern A: reaction zone crossovers for an RZ reject or bounce.
- Pattern B: key levels for a KL reject or KL bounce.
- Fewer trades with more confidence.
- Focus on SPY and TSLA options ONLY!
- Time to simplify the process and improve/reach the next level.
- 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.
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