Trading Journal #24
08:38 am: “Futures red to start the week with market cutting risk ahead FED on Wednesday. Market expects a 75bp rate hike on Wednesday but some say 100bp, so that brings up some selling, but no one really knows, so let’s wait to see and we will go from there. Although seeing some oversold bounce from premarket lows to keep on watch.
08:39 am: “Morning focus on Semi’s, Tech and SPY. NVDA showed some nice relative strength up on Friday so lets see if it goes for day 2 up or not. Also some Friday gaps to fill higher, so let’s see if we can have a red to green move. BUT IF tech and Semis do not bounce and break below Friday’s lows, SPY has a gap to fill at 379s, so keeping that in mind if the market continues selling.
Morning Trades: I started the day following my 8:39am trading plan and took NVDA AMD META calls early morning for a red to green move, which gave me most of the cash flow on the day. After that I played IWM short and then long for another great cash flow trade, so overall a great morning.
Losses review: Exceptionally, no stop losses hit today as I locked my gains on all trades and back to cash, so I’m very happy with today’s risk management.
Key Takeaways: Traders spend time building up a trading plan before the market opens, so when the bell rings, they are ready to take action without thinking…just acting and following the plan.
Look Ahead: Today oversold bounce was expected as market was very oversold, but it’s FED week, so no one really knows how market will act after Wednesday 2pm statement and Mr. Powell 2:30pm, so the best is to take trades for now until we have a more clear view.