Trading Journal #23
08:32 am: “Futures red to start the day as the market is still heavy and yesterday’s bounce was weak. Next week we are going to hear from the FED so market participants are not risking much as it’s wise to cut risk. I’m staying open minded for now, as I cut my risk and looking for opportunities
08:33 am: “Morning focus on tech stocks and yields as we approach the FED meeting next week, so let’s see if we have a short squeeze prior event OR breakdown below yesterday lows. Staying open minded for now and I cut my risk per trade protecting my cash during a volatile period.
Morning Trades: I started the day looking for NFLX that was gapping up and as I see stock held 229+, I took NFLX longs with Calls that more than doubled in some minutes, so I locked my gains. I also saw PLUG bounce and took Calls for a red to green move that also doubled so I also took my gains. I started looking for TSLA to fade as stock was extended, so I took PUTs and first got stopped but on second entry at better prices, was able to double and lock my gains.
Losses review: I got stopped on the first TSLA short, but that’s ok, as stops are there to protect us. I gave stock some more time on the squeeze and some minutes laters, got back into those PUTs at better prices and got my money back from early loss and way more, so I’m very happy with risk management.
Key Takeaways: It’s ok to get stopped, so if that happens, re-evaluate your trading plan and if it’s still valid, give some more time for better entries and then pull the trigger at cheaper prices.
Look Ahead: Overall market still heavy but seeing some big cap names with some nice relative strength as NFLX TSLA, but we need other big names such as AAPL MSFT AMZN and Semi’s, to bounce up so indexes can squeeze up. This is still a very tactical market, so taking trades during volatile periods.