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Option Day Trading: 7/3/23

 

My Daily Process for Trading Options

DAY GOALS & RULES

TRADING PROCESS
  • Focus on reaction zone cross-overs with confirmations for an RZ reject or bounce.
    • For continuation outside of determined zones, check for any intra-day new RZ formations for fractal continuation.
    • Only enter if the setup is triggered.
  • $500 position only.
  • Maintain a 10% loss structure ($150 max loss with $500 positions).
    • If three losses on any day, I will be done for the day.
    • When 8am PST occurs, then done for the day.
MINDSET
  1. BE DISCIPLINED.
  2. BE PATIENT.
  3. BE MINDFUL.
  4. RELINQUISH.
  5. EMBRACE UNCERTAINITY.
  6. EMBRACE CHANGE.

REFLECTION

  • I took almost a month-long hiatus from journaling online to focus on developing psychological and trading processes.
  • If I have any readers, my apologies, but it was necessary for a momentary break.
  • As a result, I have refined my process further, and is more specific and robust.
    • I am also working on a new tracking spreadsheet, so updates will be made soon.

PRE-MARKET PLANS

Market News

  • We have US: PMI Manufacturing and US: ISM Manufacturing at 6:45am and 7:00am PST, respectively.
  • Due to the Fourth of July holiday, the stock market will close early today at 10am PST.

SPY

  • For today, I have these levels marked: 
    • Reaction Zones: 
      • 444.50 (yellow zone)- wait for the cross-over.
      • 442ish (yellow zone)- wait for the cross-over.
      • 438ish (green zone)- Gap up/cross-over occurred. Possible retest for the bounce.

TSLA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 280ish (yellow zone)- wait for the cross-over.
      • 264.50ish (green zone)-Gap ip/cross-over occurred. Possible retest for the bounce.


NVDA

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 425ish (green zone)- wait for more confirmation before getting in for a bounce.
      • 420ish (yellow zone)-wait for cross-over.

QQQ

  • For today, I have these levels marked: 
    • Reaction Zones:
      • 370.50ish (yellow zone)- wait for the cross-over.
      • 368.50ish (yellow zone)-wait for the cross-over.


RAW TRADING NOTES & COMMENTARY

  • Weird setups this morning, but I will see if anything sets up.
  • I only have about 1 hr to trade today, so it will be a short day.
  • Well got in on NVDA.
    • Got in too soon and got stopped.
    • As soon as I got stopped, it did exactly what I wanted.
    • Oh well, protected against losses, that's all I can do.
    • Unfortunate loss, given that I was dead on with the play.
  • TSLA approaching cross-over. 
    • Thought about getting in on the break but decided to wait for the pullback.
    • looks like we won't be getting a pullback...lol
  • Well, I tried NVDA again and stopped out again....too choppy.
  • Got in on TSLA...probably got in too soon here.
  • If this is a loss, I will be done for the day.
    • It should be a profit now since the trailing stop is above my initial entry.
  • Most likely, 2 losses and 1 win today.
  • Let's see if TSLA can break the highs and compensate for my choppy losses this morning.
  • stopped out on TSLA
  • I hit three losses and already broke my rule, but it was too good of a setup to pass up, so I needed to try again.
    • I felt like I was getting in too early, so I'm giving it another shot.
    • This is the last trade for today.
  • Stopped out again.

POST REVIEW

  • Nice setups, but the price action was extremely choppy, so I was stopped out, unfortunately.
  • Yup, right on the setups, just too early...damn.
  • Oh well, small losses and the next trading day is another opportunity.
  • I needed to be more patient today....would have bypassed the earlier chop.







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