Option Day Trading SPY and TSLA: 4/28/23

 

My Daily Process for Trading SPY and TSLA Options

DAY GOALS & RULES

• Focus on Intraday System Patterns A. 
• Pattern A: reaction zone crossovers with confirmations for an RZ reject or bounce. 
• 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.
• BE WARY OF SUCCESS AND THE REGRESSION METRIC (MINDFULNESS)

REFLECTION

Yesterday was a fantastic day. I learned a ton from paper trading, and opportunities were everywhere. I captured decent opportunities in paper trading but still need to grow. As today starts, I am conflicted because the more I paper trade, the more it seems like achieving absolute consistency gets further away. 

I do not want paper trading to be a norm, even though it will most likely help me in the long run. A new change in strategy needs to be considered. Incorporating paper trading as a tool for tricky or frustrating days can be used to step back and re-evaluate. Paper trading for a day is therapeutic. Longer than that, it might impede my real account growth. 

I want to use real money today and see how that goes. 1 contract, 1 pattern, and take it slow. If frustration or significant losses ensue, I can lean on paper trading to reveal my faults and show me better opportunities.

PRE-MARKET PLANS

Market News

• It looks like we have Core PCE at 5:30am PST and Michigan Consumer Sentiment at 7:00am PST as the high-impact news today.

SPY

• For today, I have these levels marked: 
• Reaction Zones: 
• 412.50ish (yellow zone)- I already had the cross-over, but not sure if I trust the chart since it is right after the market close, so this will not be a priority. However, the RZ below is very intriguing.
• 410ish (green zone)- Cross-over occurred on strength yesterday but on a longer time over days. Wait for the re-test for the bounce entry.

NOTE: This might be a better indicator for determining RZs by looking at daily reaction zone areas. I can use the 2-month 15min timeframes to find these. Might have stronger reactions increasing the probability of success. The chart is much cleaner/more straightforward to see the zones. Even the 5-day 5min chart is clearer.

TSLA

• For today, I have these levels marked: 
• Reaction Zones:
• 160ish (yellow zone)- Wait for the cross-over.
• 157ish (yellow zone)- Cross-over occurred on a longer timeframe. Wait for the re-test.

RAW TRADING NOTES & COMMENTARY

• I only have the RZ cross-over bounces on deck for SPY and TSLA.
• simple. 
• anything else that happens must wait for cross-overs and confirmation to adapt.
• Got in on TSLA RZ bounce.
• stop is a break below 158 since I got in a bit earlier than I wanted...
• my perfect entry just hit now...
• testing my stop
• added 1 more contract.
• Got out small profits. I played this one subpar.
• I got in too early. Let's not do that again.
• I liked that I added the in green zone...I think that is fine and could be something I can develop further, but it was risky because it is not developed.
• I feel myself getting ancy, so I need to cool off and refocus.
• I will most likely be right on TSLA, but my failure to be patient at the begging led me to have a subpar performance. Need to learn from this.
• SPY showing admirable strength, no pullback yet...
• Nice play on TSLA...fudged an excellent play, but glad that I was on the right track.
• SPY cross-over now... waiting for the re-test.
• wow, TSLA...was dead on. Something to look forward to.
• just sucks because I was there, and I am the source of my own frustration by getting in too early...
• Need patience for a pullback on SPY, ideally back to 413.
• For me, better patience might just equal better performance.
• In retrospect, I guess making some money is better than having a huge % gain in paper money....lol.
• markets look like they don't want to pull back...annoying!
• possible pull back on TSLA too, but too close and already had a monster move from the earlier bounce....so we probably need to wait for a better setup.
• probably a re-test of VWAP of SPY too.
• it would not surprise me if it happens when I need to take my son to school...
• Got in on the quick pullback.
• I might be getting in too soon, but that was a fast drop, so I needed to act quick.
• Sold on a nice push up....need to go. Just locked in quick profits.
• I'm probably selling too soon, but I need to go! It is what it is!
• Nice to be on the right track again.
• It is clear I REALLY NEED TO WORK ON MY PATIENCE!
• I made only a tiny fraction of what was offered.
• Most likely done when I come back.
• better to leave off on a good note.
• Just WOW. 
• Didn't I say that when I left, it would set up. It doesn't get any perfect than that.
• I had the right plan, but my circumstances were not aligned. 
• Post charts will highlight what I am saying. It is apparent on the chart.
• Dead on.
• These are the days that pump me up so much.
• This refined strategy and new focus excite me for next week. 
• Hopefully, this is the start of something new.
• It has been long overdue, for sure.
• Been grinding for a while now.
• Only time will tell.

POST REVIEW

• I need to work on my patience for entries and for exits.
• now that I refined my strategy even more, it is probably even more robust, so I can start trusting it a little bit more by giving it more time to work.
• I got in too soon on one play, which ruined my return.
• fast drops might be okay to get in that moment, but for slowish/regular movements, I need to wait for the zones.
• Dead on with my setups today.
• Relieved and excited for next week.
• Although I am excited need to be cautious too. 
• one trade at a time.