Chapter 3 Trading journal #128–07/16/2019 +$262 (Wrong stops, Wrong stocks, Early entries)

Stocks:

Mistakes I have to completely eliminate in my trading:

1. Wrong stops. I should not be in the trade if I’m going to use the wrong stop loss
2. Trading the wrong stocks, where there is no edge for me.
3. Early entries after drop > I have to wait for a pop.

Every execution for me should be precious. If I decide to get in, I have to be able to hold when it goes against me. Being in and out — is not ok, and will not bring me anyway. I have to minimize the number of executions and be able to stand for each arrow I put on the chart. Otherwise, this is just bullshit trading below average. This is not the reason I’m here.

This way of thinking, “there is some probability. I will give it a try,” has to be completely demolished. This is exactly what brings me into the trades, where I do not have confidence, I’m getting shaken out and spend my attention span, mental capital, and firms’ capital — WITHOUT ANY REASON!

Options notes:

• Selling High IV is extremely important, specifically, If I want to be delta neutral — I have to get in on the high IV. I need to hit the bid if needed. otherwise, it will just drop, and I will not get a…