Chapter 1 Trading journal #24 - 02/11/2019 -$144 “Why is it so easy to f… up the whole day?”

Report card.

• This whole month I’m concentrating only on entries and position sizing.
• Today I made mistakes with Both. From one point of view, it helped to expose that my sizing was always approximate, and only starting today I built an actual risk spreadsheet.
• In general, I’m feeling optimistic. I made lesser mistakes today and showed good trading in the morning. I need to keep working on these 2 things and my results will improve.

$SNNA +$40.87

$OTLK + $19

• Missed the second entry on this one at 10:50

Tape read:

• first 5 minutes: 19 rejects really hard ( can barely see it, only prints on the tape);
• 14 holds ( no one is hitting the bid — sign to get out if short) In general if the stock didn’t drop and didn’t rip higher (do not short it), really big pauses on the tape ( i guess moments of indecision are not good for being short);
• bids step up, the price goes higher; next big offer 1.19;
• there is minor selling. buyer steps down from 15 and then refreshes at 16 ( not a good sign for shorts);
• still, not much selling; big market buy 4500K at 4.18 (offer stepped down to 17s) Price stalls at 19 and rejects — bids are stepping down to 16 and hold. Offers step down from 18 to 17. ( Ok, here might be my first level to get short off 19s + 1 cent risk = 20).
• Price stalls, not too much action here, big ask shows up at 1.17–22K ( If short here — time to get out on 18s) Bid disappears — shows up back. Offer still stalls at 19s. A lot of selling into the bid!
• Now big offer shows @19s (time to get in? ) — they took out the offer and new offers showed up in the 20s, took them out, and stalled out at 21s
• The tape is red, offers step down, bids step down. Offer holds, bids are refreshing (holding 18s and 19s)
• A big bid shows up on ARCA 20K @1.19. ok At this point we got a 200K volume bar that got rejected (that is our confirmation to get in! Finally! WAIT till the Volume peaks and find a confluence with the tape!
• The level is broken into 24s!!!
• TAPE SPEEDS UP — Offers are HOLDING!
• Ok- So that was the idea entry here. Speed of the tape + we created Resistance level with rejection I should have been shorting of + Volume peaked
• That’s the moment where I need to get in with the proper size

$SPI — $43

• This was my A+ setup HOD rejection I risked $20 per trade — fine with me.
• All the time it was ascending pattern — this was the main clue = do NOT short it, wait till this pattern change

$INPX -$7

• Could have traded range trade here — what’s the point? It was holding it ascending triangle otherwise. there should be pressure to sell. Bids were stepping up here.

$MLNT -$72 — When there is no active action — do not use layered out orders

• First big mistake of the day that sends me on tilt — layered orders out — They were too big for my risk

$PTI — lost my shit here

• Mistake 1 — I missed re-entry on the bounce. That’s the only entry that tells you the truth! The first one — if you missed it you have to wait.
• Mistake 2 — DO NOT CHASE BOTTOMS
• Mistake 3 — Use the proper size.

Read next: Chapter 1 Trading journal #25–02/12/2019 +$65 Green Day with a lot of mistakes. Could have been +$200

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