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

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

PRE-MARKET PLANS

Market News

• It looks like we have no high-impact news today.
• The markets have undoubtedly been strong
• Let's see if we get continuation or a pullback from all the strength.

SPY

• For today, I have these levels marked: 
• Reaction Zones: 
• 412.50ish (yellow zone)- at the zone already and is also a KL from yesterday. Let's wait for the cross-over to determine the direction.
• 411ish (yellow zone)- wait for the panic for possible RZ bounce or the cross-over for RZ rejection. We have been strong the last few days, so a pullback is likely.

• Key Levels:
• 413.50 (thick red dashed lines)- wait for the KL reject. There are no clear KLs (resistance), so it is hard to have confidence in some of these KLs. Be more cautious than usual.
• 410 (thick red dashed lines)- wait for the KL bounce. The next KL is 408.50. Clear support level, so these are fine.

Note: SPY is in a weird place in its chart as it does not have very clean resistance KLs. So it might be choppy. Finding the levels intra-day to better understand supply/resistance may be better.

TSLA

• For today, I have these levels marked: 
• Reaction Zones:
• 197.50ish (yellow zone)- wait for the spike for  RZ reject or the cross-over for the RZ bounce. We do have an overlap with a KL.
• 196ish (yellow zone)- wait for cross-over events on here to determine the direction or wait for the panic and RZ bounce.
• Key Levels:
• 200.00 (thick red dashed lines)- wait for the KL reject. TSLA can't seem to hold above 200 whenever it manages to go over...
• 192.50 (thick red dashed lines)- wait for the KL bounce.

RAW TRADING NOTES & COMMENTARY

• Got in on the SPY RZ bounce.
• may have gotten in too soon.
• well had a little green, then thought about taking it, then didn't.
• then needed to cut losses...I thought I put my order in and realized it didn't get in. So I took a more significant loss than I wanted.
• Got in on the cross-over for the RZ reject/Breakdown.
• well got screwed over.
• I tried to cut losses, and a crazy spike and the same thing happened; I clicked it, and my order did not get through.
• bigger loss.
• I was aware of the variable change and will be holding this.
• if it is another loss going to take a break.
• it is choppy...so annoying.
• well definitely got chopped up today...and it's on a day I decided to increase position size too.
• the market never fails to teach me lessons.
• I pushed it too much today, and it seems like the market just wanted to be extremely choppy, and I paid the price.
• I played my strategy well today, but the market was choppy and tugged me around.
• rare to get this action.
• this type of result pushes me over, and I am definitely in the negative cycle now.
• no question
• Missed the SPY KL bounce at 410...was partly afraid and partly indecisive because I wanted to see how much-settled funds I had left, but fidelity took a while to load the data.
• Got in again on the RZ reject...made some back...but still down pretty big on the day.
• Horrible day.
• Probably done.
• It's hard to learn from days like these because (1) adhered to plans. (2) I wanted to cut losses but had mistakes happen and couldn't do much about that (they don't occur often). (3) Yes, I increased my position size, but it seems unfortunate that it all aligns today.
• Got in TSLA KL bounce.
• Let's see if the 410 KL on SPY and the 192.50 KL on TSLA hold as support/bounce levels
• Now, TSLA and SPY seem opposite from the other day.
• SPY wants to keep dropping, and TSLA trying to bounce.
• never easy!
• never!
• New stop 193.
• of course, as soon as I set a new stop, it tests it. I'm out.
• Shitty day.
• Some of my plays were decent today, but the ones I lost on were just off and had issues. Mistakes with executions.
• choppiness added to me missing the mark today too.
• I think I played well today, but the market was different and made me feel off.
• Out of settled cash, just in time to miss the SPY 408.50 KL bounce...will probably have the most enormous bounce ever here. Let's see! IT WOULD NOT SURPRISE ME ONE BIT!
• I think with my focus on adaptation, on days like these, would be a massive increase in risk because it amplifies the market choppiness.
• I was dead on with the downtrend today, but it was choppy.
• tough to stay the course.
• The one thing that would have saved me from significant losses today was to just have stayed with small position sizing. Just my luck. The pattern has returned!
• Well, I tried to increase my position size to 2k today, and that backfired. So I cannot risk that anymore.
• Looks like I will be stuck with 1k for a while.
• I ran out of settled funds too fast when I up it to 2k.
• I try not to make excuses for why I failed today, but it was a mix of factors. I did not get enough sleep today, either. So the day might have turned out differently if I had been more awake or rested. But don't know for sure.
• I feel like I have been making progress on my strategy, but performance wise has still been bouncing around and not making positive progress monetarily.
• I feel defeated today. I fought hard these past weeks to make progress, and I have, but on a few trades, they wiped out profits, but my process is still intact.
• Yeah, the more I replay the events of today in my mind, the more I realize that the significant issues of the day were: (1) bigger position sizing, (2) not rested.
• I think the setups I played today were decent but didn't work out well. 
• I did manage to make some money back to limit losses (almost half).
•  Unfortunately, they get ignored or forgotten because they are the same contracts I played, so they get averaged in the total net profits, etc.
• Sad, tired, and frustrated today.
• Today, as it seems, is the exact opposite of that one strong-up day (3/31/23).
• SPY hitting the critical support level at 407.50, and I can not do anything about it.

POST REVIEW

• Did not like today at all.
• I messed up on executions.
• I was tired.
• Price action was choppy.
• I increased my position size.
• Lots of factors compounded, ultimately leading to more risk and increasing the likelihood of me having a loss today.
• Whenever I seem to increase size, this indeed happens.
• I'm lucky to have remained calm enough to capture more opportunities to limit losses, but unfortunately was not enough,
• These are the days I fear.
• These are the days I must overcome.
• I can fight another day.
• Come back more prepared and more refined.
• Not as excited for tomorrow, to be honest.