Trading Journal #41
08:58 am: “Futures green giving a nice follow through to our yesterday calls. IF long, its wise to trim gains and raise stops
09:00 am: “Morning focus on stocks gapping up the first 5-15min to see if they hold morning gaps to squeeze up OR sees some profit taking to fill morning gaps.
Morning Trades: I started the day looking for a possible “catch up” trade on AMZN as yesterday was lagging, so I run Calls twice for a nice cash flow (one for +100% gains) but as no follow through, closed and locked my gains. I also run IWM short twice and the last trade more than tripled, so I closed those gains and finished.
Loss review: I didn’t have any loss as I took 4 trades and locked my gains on all trades, not risking losing money, so I loved today’s risk management.
Key Takeaways: Yesterday was a massive short covering rally, so traders should lock gains and raise stops on the way, by buying lows and trimming gains on the way into the highs until it loses momentum as we saw today.
Look Ahead: The size of Friday’s pullback will give clues on what’s next. Bulls will remain in control if price stays above 50% from the last 2 days’ move. IF prices fades lower, can give some bears control, but seasonality favors a possible rally if we go and stay above this week highs.