SPY Trade on May 26, 2021 10:01 from tjmiller2001: Tradervue User Stock Trades.

First trade

This was me getting long on a double bottom inside of a basing period.

This is a Supply and Demand Strategy trade and I was buying demand here. /ES had a basing period at 4182.5 that came from the 1 minute chart from Monday 5/24/2021. In my premarket plan I wrote that I wanted to buy calls if a bounce came at this level.

SPY opened pretty weak then found support at 417.80. I liked that this reversal came at a demand zone. I planned to get long if the level was retested. I interpreted the 10:00 candle as buyers stepping up and was decisive with an entry at 10:01. I had a 3:1 RR and was almost stopped out the next minute. But the bounce came after that. I wrote down my thoughts throughout the trade. Those are below.

At 10:06 I wrote: "Not much confirmation buyers are stepping up. The downtrend lost steam and we are consolidating. I'm not selling at breakeven bc I have a good RR. But I'm not feeling good about the position."

At this point, I was feeling nervous because no strong bounce came after my entry. However, There was no reason to be concerned by slow uptrending consolidation. In the future, I need to be more patient, relaxed, and let the trade work out.

10:14 Thoughts: "I like this reaction to the basing period but bulls need to break the 418.30 recent high on the 1m chart. I'm moving my stop to breakeven for a risk-free trade."

I like that trade management. If the recent high rejected, I'd be looking to get out. This was the right thought process to keep this trade from turning red on me.

10:18 Thoughts: "Price Target was hit, but uptrend still intact. Selling on a move under VWAP"

Continuing to adjust my stop based on logical levels, thats wise. At this point I remember wanting to secure profits because this was a rare winning trade for me. However, there wasn't a Reason2Sell so I did my best to put my emotions aside and calmly manage the position.

At 10:25 I was stopped out by a giant red 1m candle., I had been slowly moving my stop up. I think I used it appropirately. My stop wasn't too tight or too lose here.

At 10:38 I wrote: "Fighting the urge to trade things I don't have an edge in, like breakouts. I want to keep my profits and take high quality setups." Easier said than done, but right mindset.

Lesson Learned: Let your winners run. Have conviction in being contrarian at supply or demand zones, you don't need giant green 1m candles for confirmation to get long.

Second Trade

SPY had been consolidating in a range for the past 20 minutes. I wanted to get short at the top of the range and take profits at the bottom of it. I choose to short the top of the range instead of buying the bottom because
- A big seller showed up there at 9:40 today
- The uptrend line is broken and its consolidating at this resistance
- /ES is under VWAP and that level is acting as a resistance.

Before entering I wrote down: "I'm being really picky with my entry. I'm fine missing this move because it is not a supply and demand trade."

I was not going to chase this move. This is not as high of a quality setup as tons of strong sellers showing up at a strong daily supply zone. This was a small intraday consolidation that was going to break up or down.

At 10:58 I was filled on my put at the top of the zone. I had a 3:1 RR and planned on moving my stop to breakeven if 418.80 hit. That level never hit and I was stopped out quickly. The automatic exits are working way better for me than manual fills.

This was a small loss because I fought for price and had a close automatic exit. However, I'm not going to make a career out of shorting intraday resistance zones. Real edge doesn't come from the way I trade this setup. Sometimes No Trade is the best trade of all. Here, it would've been smart to stay away because this wasn't a supply or demand zone

Lesson Learned: When your edge is not present, stay away from mediocre setups. Just because the loss is small doesn't mean your attention should be on noise.

Note: The tags associated with this trade are meant for the first trade and do not include the second one. I did that because the second trade is the one that truly fits with the SD Strategy I want to look closer at the results for.