Trading Journal #53
08:36 am: “Futures green giving a nice follow through to our yesterday BABA TSLA and SPY calls with stocks gapping up this morning. Tomorrow we will have a FED statement and Mr. Powell speech, so manage risk wisely.
08:37 am: “Morning focus on TSLA AAPL SPY IWM QQQ to see if it holds morning gaps to squeeze higher OR fade to fill the gaps.
Morning Trades: I started the day shorting IWM with some Puts for nice cash flow. After that I fade TSLA with PUTs for +100% gains. I also ride META Calls for some cash flow and done. Not risking much ahead tomorrow FED day. Risk management is key.
Loss review: I got stopped on the first TSLA short but I got back in later for a better price and was able to get my money back and way more as trade doubled, so I’m happy with risk management.
Key Takeaways: FED events are always tricky, so traders look for cash flow but cut risk fast as we don’t hold the bags for too long.
Look Ahead: Market is waiting for tomorrow’s FED statement and Mr. Powell’s speech, as no one really knows what he is going to say and most important, how the market will react to FED news. As such, I’m staying tactical, looking for cash flow and with an open mind.