Trading Journal #31
08:39 am: “Futures mixed to start the last day of month/quarter with several FED speakers coming so manage risk wisely”
08:40 am: “Morning focus on SPY IWM QQQ for the last day of the quarter. AMZN is still inside 112-118s range so looking for possible move out of range. META printed an inside day yesterday, so also on watch for the next move.
Morning Trades: I started the day fading IWM with some PUTs for nice cash flow but when I saw no follow through for downside I flipped into IWM and SPY Calls for great cash flow. Some minutes later, I faded IWM with some PUTs but stopped and took a bigger loss than I was expecting.
Loss review: Last trade with IWM PUTs hit my stop and I took a bigger loss than expected but it’s part of trading. I faded the market a little bit too soon because some minutes later, the market finally rolled over as expected.
Key Takeaways: Need to work on timing and if trade hits the stop, let market move some more, give time and you’ll be able to re-enter at better prices and ride the wave as expected.
Look Ahead: We are still in a bear market with short gamma and high volatility, so it’s wise to manage risk carefully. After Q3 finished, I want to see if in the new month and quarter we are going to have some inflows that can trigger a short squeeze up OR we continue to ride down.