FAST OPTIONS TRADING. Fast in/out. Apply trading rules like CLOCKWORK. Have a day. Sleep at night. This is my personal trading journal*.
A good day, +7%, but I traded FB like an a$$, reversing my position and taking a big hit instead of waiting for my trade to set up again (which would have made nice money).
DKNG (donkey kong, lol!) was trade of the day.
I'm back to trading my full account size, so I hope I can keep my cool.
I was out during the open (Friday), so I got a late start in the market. I don't have a good method for finding picks at 10:00 vs before the open, so I used my "volume movers" screen to look for stocks on the move.
What I really did nicely today was sticking with next week's expiration. That gave me time to wait it out.
I tried to go long ORCL based on base breakout, but the tide (cravity!) was too strong for everything today. ORCL traded up to the exact intraday trendline, missed my pl target by 3 cents, and then I stopped for a loss.
OSTK was sooo juicy, but the option action was very difficult. Wide spreads, and the bid on the put didn't really move well, even though the ask went to my price several times. I ended up yanking all partials, trying to use downticks so I wouldn't hit the bid. Frustrating action there, even if it was a winner.
So, I have to be content that I got my piece today. Peace. Shabbat shalom.
Market dropped out past 3 days. Today gap up and looked to be a bounce day.
My usual setups aren't setting up bc the drop. I need to work on an oversold bounce play, something like: Strong stock, oversold but holding good levels, then gapping up above intraday levels.
I'm not sure NVDA exactly fit the bill on intraday levels. I think I was lured in by Meir. And then I got in over my head. First of all, the option was $12 range. And the spread was $1 or even $2. I know that is a recipe for disaster, bc I don't want to lose extra on the spread for a stop/market order.
LESSON. Consider that pre-empting for entries is not a good idea on this setup. Preempting might work for a breakout, but an oversold bounce should prove itself first.
I also got a tiny gainer on UBER which I played well on super small pos (at least I did that one right). And a full size loser on FB puts.
This was my hardest/best trade of the day. I got in at 9:50. Didn't take off on new highs, when it pulled back, I added at 10:30 and then I had to wait. Not just wait while green, but wait while it went above and below water. For 90 minutes! But then I got paid so nicely. I shaved off calls as it moved up, which felt meek after waiting all that time, but I did not want to miss capturing gains I waited for.
Psychologically: This didn't feel like a good trade. It was VERY taxing to wait it out.
Market is falling out hard yesterday and this morning.
I did one thing right: trading next week's expiration. It's less of a heart attack.
I did one thing wrong: BAC was a long pick, but as the market was melting, I shorted it. I rode up for a big minus before it came back close to b/e and I yanked it for about 11% loss. Would have been better to take the long signal, grab that money, and be done.
Then I got lucky with wide spreads in BYND to bring me back green for the day. And I am done! Not going to try to get too cute and mess this up, esp not going into long weekend.
Trying something new starting Sept 1. I am holding my account at this very low level. I think I trade well at this small account size, maybe less emotions. So all gains above this basic level I will skim each night into the "reserves" account. Basically, I'm going to pay myself every day. The account I want to see grow is the reserve account.
Maybe it seems counter-intuitive, that if I'm trading well I should increase size. But I think in this case the opposite. I trade well at this $level so MY best opportunity for profits is to keep producing here. Maybe in October I will evaluate the option to increase the base account size by some increment. This might be a good strategy for me... to stabilize at this account size versus growing so fast (a curse we all should have? that my account grows too fast!)
Today was a very satisfying trading day, though maybe that could have gone either way. I traded NVAX long and NVDA short. Each had huge spreads on the options. I went in on mkt orders and out on conservative limits. Maybe I left some on the table, but on the other hand, I made really nice gains today with very little psychological exposure.
Today was a wild day and I'm lucky to be green today. In the opening trade, I accidentally went calls on NVAX when I meant to go short (meant for ETSY calls, which would have also been a loser so maybe that's a wash), so I started with an unanticipated huge loss. Simultaneously was in NVAX puts which eventually paid but I didn't take enough off when I had the chance, so that trade didn't bail me out entirely.
Then as I was just back to breaking even again via NIO puts, the trading platform went out for a few minutes. 2/3 limit orders filled while I was blind. Logged in to take the last third off at support (and then it dropped another ton and I missed it). I can't complain about this trade which I got sooo lucky to hang on through some really bumpy bumps (was -$200 before getting out finally +$360)
On one hand I'm so glad to be green. On the other hand, I could have had a REALLY stellar day if I didn't have to climb out of the hole. Very roller coaster day.
Glad to just shut this down and walk away from it today.
It is worth noticing: I had a red day today, and at a certain point around 11 a.m. I stopped trading. Looking back now after the close, nothing I was watching would have helped me, so deciding to stop with a small loss saved me from a bigger loss.
Relative volume didn't help today. Today seemed like "up is down and down is up" kind of day. Fed Chair Powell was speaking into and during the open. That should have been a huge red flag to sit still or at least go extra small. Or HEY! How about take the day off? I thought I could be too smart. Instead I wasted 2 hours and 5% of my account, plus the psychological toxicity. Really, <SELF> take these days off and call it a green day.
If my biggest trading fouls are
Today I was guilty of #5 for sure. Also one case of #4. I think these offenses lead to #6, which I think is "damage control" but often just makes it worse. Also, I kept trading despite the sensation of #1 at a certain point.
Reflecting on my p/l in general, I need to come up with a method to trade Thursdays and Fridays. I think trading this week options on R,F is a recipe for disaster...as tempting as it is. The volatility makes it hard for me to do the right thing all the time.
Still need to work on answering the question, "What makes me stop?" Is it maybe 2 loses? Maybe I shouldn't take any new trades after 10am in general, green or red.
Here's what I did do right today: Control position sizes. Stop while red instead of continuing to try to redeem the day.
Something else to keep in mind: Beware the instant loser (red right away, no partial). If I have properly small position, the instant loser won't hurt me financially or psychologically. That should be plenty enough reason to keep positions small, and to trade next week expiration on Thursdays and Fridays.
I'm not sure what happened. I don't know how it started. I don't know what I did to end it, but I feel like I have my mojo back. Now I hope I can restore my account! I got hurt pretty bad.
Maybe I have a certain comfort zone with account size. When I've gotten about 2-3x that size, I have blown out more than once. As much as it seems like I should just be able to scale and scale, I think I get emotional. Maybe my comfort zone is 1/3 or 1/2 that big $number. Maybe I should skim off gains and trade solidly and consistently in that comfort zone. It seems like that's less growth potential, but actually, it will perhaps just be steady gains vs exponential rise and precipitous fall.
How do I keep trading sane like this? How do I pull in and STOP! when it's not working instead of getting all crazy? I think there was a video I once liked on this topic. I need to find it. Maybe the gist of it was: a loss sucks, but I can generally make it up in a few days (if not the very next day!). And there's going to be days like that. But if I let it go nuts, it's going to take a much longer time to repair.
My number 1 job should be to keep losses under control by stopping!
I'm going to post for now, but this is a topic I definitely need to continue to ponder, examine, expand on.
UPDATE. I reviewed July and Aug entries, taking notes and processing. Attached.
Pretty good article about losing streaks. Not losing more than an avg daily gain, regaining confidence in a demo account.
Another satisfying and profitable trading day Baruch Hashem!
I didn't get the most money, I didn't get the biggest runners. But I took my picks, traded my plan, grabbed MY money. I got my piece, and PEACE.
After a multi-multi-week losing streak, it's nice to have another sizable winning day (albeit on small account). A+ lesson is to preserve capital while regaining a grip. The smartest thing I did when I started going downhill was to set money aside (and then more money aside) to keep some powder dry. This made it easier for me than simply trying to restrain myself with 2 small trades. I need the cash out of sight. It is still out of sight. I might leave it aside for weeks/months.
Today I tried to integrate a lesson I've become aware of recently about relative volume, and it goes to conviction. I am working on a theory that the higher the opening relative volume, the more I can trust the move (therefore hang on through a spike against me). Well, at least today, it kept me in CRM for a winner.
