August has been my first green month since the penny mania of early 2021. I finally learned to trade. However, I’ve gone back to some bad habits since the first week of the month. The last few days are perfect examples — not trading the trend on Friday or yesterday cause of “oversold RSI”. I marked this one hour bear flag trendline in premarket (in purple). Once that broke, it was a put party. Here was an opportunity to take 20 put contracts and ride them wayyyy down into Friday’s low. I didn’t do that. Then i chased at the bottom and got smoked on the reversal. -$185 for yesterday after starting out +$140. I executed a nice bear flag breakdown later in the day and that’s exactly the trade I need to be taking every single time (see below). One problem i need to address readily is that when i nail a trade, i get back in too soon wanting to hit that high of winning again and it causes a big fat loser for lack of patience. $398.47 was a key fifty fib from weeks ago that $SPY kept rejecting and had i entered on the rejection rather than chasing, I’d have ended up really really green yesterday despite the mostly choppy day after the first hour.
No reason i can’t finish the month with a $300 day and close the week and month out really strong. Watch the fifties. No trades without trendlines. No chasing puts or calls at supply or demand zones. If you wanna throw 10 put contracts out on a dump or LOD, probably best to take calls on that hard bounce as it comes into demand.
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