More Losses But Good Losses

SPY gapped down but stayed within yesterday’s price action, setting the stage for a test of my system.

Reaction zones at 585.50 and 586.50, confirmed across days, were my anchors, yet both trades ended in the red.

As a day trader, I’ve learned that losses aren’t the enemy—unmanaged ones are. 

This post reflects on my two trades, reframes “good losses” as steps toward discipline, and offers a roadmap to reset. 

Whether you’re navigating SPY options or refining your edge, join me in turning setbacks into strength.

The Setup: Navigating Reaction Zones

I waited for price action to validate the 585.50 reaction zone, a level etched from yesterday and confirmed today on my 2-minute chart. 

The gap down hinted at a breakdown, and I entered puts as soon as it broke (green circle), expecting follow-through. 

But the move stalled, closing at a -5% loss. 

This setup, a B-grade play due to the nearby 1-hour 585 zone’s resistance potential, tested my patience.

Next, I eyed the 586.50 intra-day reaction zone, also confirmed from yesterday. Missing the initial break, I entered on a pullback (red circle), hoping for a continuation of the breakout.

SPY 2-minute chart 5/15/25

Again, no momentum emerged, and I exited at -5%. 

These trades, rooted in my system, revealed a pattern that needed to be addressed.

• Green Trade: RZ Breakdown (intra/PD) [Loss -5%]

• Red Trade: RZ Breakout (intra/PD) [Loss -5%]

My execution followed my risk mitigation and exit plan, a win despite the losses.

Order Fills 5/15/25

The Lesson: Good Losses as Growth Catalysts

These losses stung, especially after yesterday’s undisciplined session, which deepened my weekly deficit. 

But they were “good losses”—controlled, system-driven, and free of emotional chaos. 

The 585.50 trade, near a resistance zone, lacked clarity, at best a B setup. 

The 586.50 pullback, though confirmed, missed follow-through due to choppy mid-range action. 

Journaling post-trade, I traced my frustration to anticipation, a habit I’ve curbed since 2024’s losses. 

Staying disciplined, even in defeat, built consistency—a mindset shift I’ve tracked over time.

Why Discipline and Clarity Matter

This day highlights two pillars:

• Discipline: Adhering to my exit plan limited damage to -5% per trade, honoring my 10% risk rule. My trailing stop secured lower risk as the price went in my favor.

• Clarity: B setups near other zones (e.g., 585) or mid-range levels often signal chop, a lesson from today. A+ setups demand unambiguous breaks, a refinement I’ll prioritize.

In 2025’s volatile market—shaped by global shifts like trade talks—discipline and clarity are my anchors.

Adapting to the Market’s Pulse

Today’s choppy SPY action reflects consolidation following the gap. 

My system, built on reaction zones, adapts by filtering noise, but I misjudged the 585.50 resistance and the 586.50 pullback’s context. 

Moving forward, I’ll widen my confirmation window, avoiding entries near conflicting zones. 

This adaptability, honed through the trials of 2024, turns losses into lessons.

Conclusion: Resetting for A+ Success

More losses, but good ones, mark a turning point. 

The two losses today, born from disciplined exits, contrast with yesterday’s chaos.

My focus shifts to A+ setups—clear breaks with minimal zone overlap—resetting after this week’s hole. 

In 2025, this discipline, paired with a resilient mindset, transforms losses into a foundation for growth, aligning my trades with purpose.

Action Steps: Build Your Discipline

After each session, journal: 

Did I stick to my risk plan? 

What lacked clarity? 

Try a 5-minute pre-market review to assess zones—a habit I’ve adopted to sharpen focus. 

Review your SPY trades weekly, refining setups like 585.50 based on patterns.

Discipline is a craft—hone it through reflection.

Call to Action

What’s your biggest lesson from a loss? Share below or follow me on X—let’s grow together!