My Daily Process for Trading Options
DAY GOALS & RULES
TRADING PROCESS
- Focus on reaction zone cross-overs with confirmations for an RZ reject or bounce.
- For continuation outside of determined zones, check for any intra-day new RZ formations for fractal continuation.
- Only enter if the setup is triggered.
- $500 position only.
- Maintain a 10% loss structure ($150 max loss with $500 positions).
- If three losses on any day, I will be done for the day.
- When 8am PST occurs, then done for the day.
MINDSET
- BE DISCIPLINED.
- BE PATIENT.
- BE MINDFUL.
- RELINQUISH.
- EMBRACE UNCERTAINITY.
- EMBRACE CHANGE.
REFLECTION
- I took almost a month-long hiatus from journaling online to focus on developing psychological and trading processes.
- If I have any readers, my apologies, but it was necessary for a momentary break.
- As a result, I have refined my process further, and is more specific and robust.
- I am also working on a new tracking spreadsheet, so updates will be made soon.
PRE-MARKET PLANS
Market News
- We have US: PMI Manufacturing and US: ISM Manufacturing at 6:45am and 7:00am PST, respectively.
- Due to the Fourth of July holiday, the stock market will close early today at 10am PST.
SPY
- For today, I have these levels marked:
- Reaction Zones:
- 444.50 (yellow zone)- wait for the cross-over.
- 442ish (yellow zone)- wait for the cross-over.
- 438ish (green zone)- Gap up/cross-over occurred. Possible retest for the bounce.
TSLA
- For today, I have these levels marked:
- Reaction Zones:
- 280ish (yellow zone)- wait for the cross-over.
- 264.50ish (green zone)-Gap ip/cross-over occurred. Possible retest for the bounce.
NVDA
- For today, I have these levels marked:
- Reaction Zones:
- 425ish (green zone)- wait for more confirmation before getting in for a bounce.
- 420ish (yellow zone)-wait for cross-over.
- For today, I have these levels marked:
- Reaction Zones:
- 425ish (green zone)- wait for more confirmation before getting in for a bounce.
- 420ish (yellow zone)-wait for cross-over.
QQQ
- For today, I have these levels marked:
- Reaction Zones:
- 370.50ish (yellow zone)- wait for the cross-over.
- 368.50ish (yellow zone)-wait for the cross-over.
RAW TRADING NOTES & COMMENTARY
- For today, I have these levels marked:
- Reaction Zones:
- 370.50ish (yellow zone)- wait for the cross-over.
- 368.50ish (yellow zone)-wait for the cross-over.
- Weird setups this morning, but I will see if anything sets up.
- I only have about 1 hr to trade today, so it will be a short day.
- Well got in on NVDA.
- Got in too soon and got stopped.
- As soon as I got stopped, it did exactly what I wanted.
- Oh well, protected against losses, that's all I can do.
- Unfortunate loss, given that I was dead on with the play.
- TSLA approaching cross-over.
- Thought about getting in on the break but decided to wait for the pullback.
- looks like we won't be getting a pullback...lol
- Well, I tried NVDA again and stopped out again....too choppy.
- Got in on TSLA...probably got in too soon here.
- If this is a loss, I will be done for the day.
- It should be a profit now since the trailing stop is above my initial entry.
- Most likely, 2 losses and 1 win today.
- Let's see if TSLA can break the highs and compensate for my choppy losses this morning.
- stopped out on TSLA
- I hit three losses and already broke my rule, but it was too good of a setup to pass up, so I needed to try again.
- I felt like I was getting in too early, so I'm giving it another shot.
- This is the last trade for today.
- Stopped out again.
POST REVIEW
- Nice setups, but the price action was extremely choppy, so I was stopped out, unfortunately.
- Yup, right on the setups, just too early...damn.
- Oh well, small losses and the next trading day is another opportunity.
- I needed to be more patient today....would have bypassed the earlier chop.
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