June 12 Recap

Just because it's not a good entry for calls, does NOT mean it's a good entry for puts. Wait for the proper setup on the 10m no matter what. Period.

I hesitated or missed or just didn't take the morning rip.

In premarket we ripped up past the 10m48e and put trigger, but I was hell bent on waiting to enter closer to the previous swing low / premarket low.

In hindsight, overnight and premarket created a perfect W with very meaningful bullish divergence. The W neckline coincided with the put trigger which held as support for the hour following the news release. I could've entered calls with the put trigger as risk. That type of entry will come with more experience and confidence and back testing of the system.

Just an incredibly classic W. Fine I missed it. There will be another W. What I can't do is what I did. We were far too extended from support, so no justifiable entry for calls. But frankly there was no justification for puts either! Yet once we were close to resistance, I found what I wanted to see.

After the 10m candle closed at premarket high and PDC I used that as enough justification to enter puts. HUGE POSITIVE. I knew it was counter trend. I knew it was risky. So, I waited until I was ridiculously close to the stop out area. I took a small size of 0dtes and took my loss resulting in only a 1.3% portfolio loss. Well within the 2% loss max.

So, I was not justified in entering, then I was proven wrong, but because I managed my size, those mistakes didn't hurt me.

Mindset saved for the afternoon.

Which was incredibly choppy, choppy, choppy. But we were clearly bullish, so calls were the only option, meaning I just needed to find proper support. Welp, as we chopped above the call trigger, and dips to the 10m13e were getting bought, I entered calls pretty much at the call trigger.

Of course shortly after my entry we dipped quickly down to the 21e. My cons were down 20%. In hindsight, that was the ideal entry. We had clear bearish divergence with an inability to breakout. The more probable outcome was a test of the 21e.

Obvious is getting in after we've reacted to the 21e. That area also happened to be a key pivot on the hourly chart. The bold yellow ish line marks the close of the 10a and 11a hourly candles. Even if I don't notice that going forward, I shouldn't have entered until after price reacted to the 21e given the bearish divergence. Once we did breach the 21, we very slowly put in a mini W, which was the justification to enter. Calls moved about 30% from low to high there. A quick, very justifiable 10 point move.

I then took an EOD trade. Full risk. Thankfully I really owned the idea of full risk because the contract dropped 95%... I frankly didn't wait long enough. I also held on to it because I continued to see how bullish we were and there was plenty reason to remain bullish. We tested the same previous level we bounced off of for my original calls. My contracts dipped all the way to 25 cents. I contemplated adding, certainly wanting to get in, but because I was already positioned I just let it be. Interestingly enough I could've bought 10 contracts for the amount I had already fully accepted the risk on. Those contracts closed at $5... 10x to 20x. I was able to make a profit but didn't come close to returning more than I risked.

For EOD I truly have to wait for EOD. Wait for a clear setup. I need to be crystal clear about how much I'm willing to lose and actually wait late enough to buy multiple contracts EOD.

Solid day regardless. Risk managed on the losing trade. Profit taken on the winning trade. Risk accepted on the EOD trade. Kind of perfect actually.