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Option Day Trading SPY and TSLA: 4/12/23


My Daily Process for Trading SPY and TSLA Options


  • 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!
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.


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. 


  • 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. 


  • 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, 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 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.


  • 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!


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