Trading Journal #6
08:47 am: Futures are red giving a nice follow through to last week’s top. On last Tuesday (Aug.16, 2022) at 2:36pm, I said on Discord: “short term top” and from there the market has been falling nicely. Shorts should be trimming positions on the way and adjust stops to cap gains. The size of the pullback will give clues on what’s next. Some names retest 21MA and let’s see if they bounce from there or not.
08:48 am: Morning focus into tech stocks as some names are getting near 21MA on a big gap down. Waiting to see if in the first 30 min of the session we have an oversold bounce to fill this morning OR if stocks fade lower before the bounce. Will be looking for the leaders AAPL, MSFT, Semis plus SPY IWM QQQ for clues and possible divergences for an oversold bounce.
Our Trades: I started the day looking for the oversold bounce as mentioned before 9am, so I took some MSFT IWM calls for nice gains. I also saw some bull flow into energy names, so I took XOM Calls for nice gains. Overall it was an acceptable day but not great as range profit was from +7% to +40%, but not much anyone can go on slow choppy action. Little-by-little add money to the account, that’s what matters, until we get the biggest move.
Losses review: I cut the trades that were fading before turn red so that helped. Also added on some that were red, was able to average down my position and ride it back into green, so that helped.
Key Takeaways: “Control what you can control!”. When the market is choppy you do less and risk less. On a slow market, when you have gains, you take it. On slow markets, you add profits little-by-little to grow your account, even if its 50$ profit is always better than a loss. The slow action will end and you then can go bigger and have bigger returns.
Look Ahead: We had a nice fade from last week when on Tuesday I said market topped. SPY was 431+…now 415… IWM was 201+…now 191… QQQ was 332+…now 316… also on Wednesday, said AAPL topped when it was 174.5… now 168… So the time to short big was last week, not now… now, you cover shorts and adjust stops to cap gains and we wait… let the dust settle down and see if today’s lows hold or not. IF today lows, hold and market goes above morning highs, watch gaps to fill higher. BUT, if market breakdown below today lows on the day, then we can have better re-entries lower for the oversold bounce. For now, let the price settle down and use morning highs/lows as key pivots for the next move.
This trading journal is a log of all the options trades made. It is a tool that I use to track my progress and improve my trading strategies over time. I use this information to analyze my trading performance, identify patterns, and improve my decision-making processes. By keeping a trading journal, I can learn from my successes and mistakes, and make better trading decisions in the future. You can use other tools for journal as TraderSync , Tradervue or Excel
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