Trading Journal #22
08:41 am: “Futures slightly green after PPI numbers to clear yesterday’s oversold conditions, but the market is still broken, so manage risk wisely as we approach monthly options expiration.”
08:42 am: “Morning focus on tech stocks after yesterday’s carnage, to see if they have more sell pressure or the market is able to consolidate for a bit before triggering the next move. TSLA on watch as yesterday didn’t find many sellers, so let’s see if it holds 290s today or not.”
Morning Trades: I started the day looking to fade the open, so I took IWM short for a green to red move and took the 80% gains fast. After that took some WMT IWM TLT scalps for small cash flow. I saw some bull flow on CL and jumped into those Calls that closed for a double. On TSLA, after the stock filled 300s gap, I took a short and as no follow through to the downside I locked my gains and finished for the day in 1hr.
Losses review: I was able to avoid any losses today by cutting profits fast, so happy with risk management.
Key Takeaways: Traders need to stay flexible and take trades during volatile periods. Also know when to sit on your hands and avoid getting chopped when the market goes into a slow choppy action.
Look Ahead: Today market made an oversold bounce helps to clear oversold condition from yesterday tech sell carnage. The size of the bounce will give us clues on what’s next, but so far take profits on the longs on the way up and use today’s lows as a stop on those longs.