Chapter 3 Trading journal #124- 07/10/2019 -$25 ( -2R, 4 mistakes: Higher Lows, Wrong setup/wrong trade management)

Made $105 and lost $19 on options. Tomorrow will try to use more size.

Lost on the stocks. Know precisely my mistakes. I make money only when there is a continuation, and I have to be more frustrated and more protective after I get the move.

Mistakes:

• $OSTK — was not my niche. B stock. I should have treated it as a scalp and locked in 1.5R when I could instead of getting it and scaling in, thinking there was 2 point move ahead of us. In general, it already happened yesterday, and today did not look like a continuation. #1 B stock for me > Wrong trade management #2 Wrong entries> Was buying highs and shorting while HL was holding.
• VLRX — late entries + Higher Low entry

What to work on.

1. Avoid getting in while Higher Lows are there or ascending bids.
2. Concentrate on being 100% sure that I’m taking the right setups. I have to be adamant and confident in the setups I take.
3. Frustration. I’m frustrated with myself, and I should be frustrated. I’m making mistakes that I’m aware of, and I have to speed up getting rid of them. I think every day I should start with being frustrated to make sure that I have this mental resistance to making the same mistakes.

Notes:

• Also, the moment I’m starting to switch my bias or I’m Not Sure; This is the biggest indicator I will perhaps get chopped really bad.
• Watch more for areas where the price spends time.
• Keep going over bigger context mistakes.
• With options and here are 2 setups to hold on to, IV crush right after the open, Theta decay into the close (if ranging markets and stock environment)
• The mistake I made with the options was that I should have stayed with my positions unless the range was broken (ROKU)

VLRX -$5

Higher Low mistake. This is my weekly/monthly goal to completely avoid entries like this.

Also, there was just a High Volume zone.

Also, this was the third leg down, I should not have shorted this wedge Until I saw a setup with 100% confidence. This is the bigger context mistake I missed.

VISL -$12

FCEL -$25

Had around 1500 almost all the time. Should have covered 1/4 where I marked.

OSTK -$68

#1 This is a B stock for me. So I should consider it as a scalp, as THIS IS NOT MY NICHE.

#2 This was the mistake, There was no my setup, except as getting short from the top of the range. I should not have taken an entry here.

#3 The usual mistake getting long on top of the range. Again this is not my setup.

#4 Getting short, while Higher Lows were holding. This is a mistake I’m working on weekly. monthly to completely avoid in my trading.

Read from the beginning: Chapter 0. What it takes to be a seven-figure trader, and how it all started.

or read my latest post: Beginners guide to trading mistakes. Common day trading mistakes with 50+ charts and examples.

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