June 10 Recap

Real conviction and understanding of the overall context is incredibly necessary to not panic! There was plenty of reason to panic, as price tanked out of nowhere. BUT, never closed below a level that invalidated the thesis.

The call trigger was clear resistance in the afternoon, but the 10m trend was also very strong and spent enough time acting as support that I felt compelled to enter calls. Very shortly after I entered calls, we started a very quick, deep, scary tank. In those 10 minutes my cons dropped 30%, which was made extra scary because of my idiotic position sizing. But, in the morning plan I discussed how all time frames were firmly bullish.

The only setup for puts was a clear close below the previous day close. So, even though price was screaming down to below PDC, I felt confident in the HTF direction. Also, for a vommy on any time frame, it's less likely to convert if the HTF 21e is just below.

That's what we had here. 10m48e broke, but the H21 perfectly held. We then got a tweezer bottom off the H21 while the 10m21 reclaimed and that was the signal that we were headed to test HOD at minimum.

What's interesting to me is that while I stomached the huge drawdown, I was still compelled to take profit quickly to feel the sense of phew I've broken even.

Additionally, other than being oversized to begin with, given my conviction, would I have actually entered on the extreme dip, or added more after the recovery? I don't know.

But what I also find interesting is that IF I had waited the contracts returned 70% off the low. If I was confident enough to hold, why would I not be confident enough to add?!

Experience will come but I don't love the psychological quirk of being willing to hold when in the position, but unwilling / unconfident enough to enter without already being in...

Great conviction. Stupid sizing. "Made up" for yesterday, which is a terrible, terrible mindset. Each trade is independent. Each trade's outcome has no material impact if positioned correctly. I'm not practicing patience if I'm constantly sizing up and taking profit quick.

That can only be the process if I'm taking sniper entries. Which if that's the case why not size smaller into 0dtes?? I'll get there. Ultimately today was a good day, but very much could've been a disastrous one...