BermudianOption trading journal

Stopped myself out of COST the same day I entered it for a partial loss.

Thanks man! It means a lot to hear other people are reading the journal. Definitely create your own journal as well once you decide on a trading strategy. I will be posting some resources that helped me choose a trading strategy in the Stock Market Today forum soon so keep an eye out on that.

 

Over the past week, I looked into using my smaller trading account for potential short-squeezes or range-bound trading.

Did a decent amount of DD over the weekend and I see more bullish opportunity than last weekend. I am nervous that the breakout could be faded but I will just have to adjust my positions accordingly if that happens. Here is what is on the radar for Monday morning:

ATVI
Trade type: Ascending triangle. Not an extended period of time but a tight trading range that allows me to get into a higher priced stock potentially.

Entry & Stop Placement: Stop placed near the $70 level. It has been somewhat of a support-turned-resistance area in the past:


Target stock price:
$73.71 (or wherever Reward is 3x Risk)

Concerns
The price action has been pretty volatile in the ascending triangle. Gaps and fades caused a lot of whiplash. Also, the entry level isn't far from the closing price on Friday, so it is possible that the stock gaps higher (so that I am filled) and then subsequently gets faded, or that it gaps higher without me and keeps running.

Positives
There are still higher lows throughout the period (hence the ascending triangle)

Set-up Grade
B+ (Tighter consolidation and an entry level further away would have gotten a higher grade)


CX
Trade type: Ascending triangle.

Entry & Stop Placement: The stop is below the price action in the last 1.5 days


Target stock price:
$8.69 (or wherever Reward is 3x Risk)

Concerns
200 MA overhead lowers the probability of success imo. If/when the stock gets close to the 200MA, I will contemplate taking risk off the table even if I have not hit 3R yet.

Positives
Tight consolidation range.

Set-up Grade
A- (No 200 MA overhead would've gotten a higher grade)


PNC
Trade type: Ascending triangle.

Entry & Stop Placement:


Target stock price:
$159.45 (or wherever Reward is 3x Risk)

Concerns
Typically when I trade ascending triangles, price is below a resistance level but here, the resistance level is now potentially support. I guess I'll just have to trade it normally.

Positives
Steady holding trend-line, recent Earnings Report in the direction of the trend. No need to worry about future Earnings Reports in th near future, the financial sector is booming.

Set-up Grade
A- (I can't make heads or tails whether the close above resistance affects the setup. Overall, it is a sign of strength so I should be happy about that at the least)

 

LNG (Alternate trading account)
Trade type: Symmetrical triangle.

Entry & Stop Placement: Entry is based off of the lower high trend being challenged. Stop is below support that has held since 1/16


Target stock price:
$58.14 (or wherever Reward is 3x Risk)

Concerns
I did have to purchase At-the-money options because of the lack of capital in this trading account. Also, I am not overly confident about the trendlines. That is to be expected with shorter term timeframes though I suppose.

Positives
I bought the March calls so I have some time for this trade to play out. Additionally, I do like the clear line in the sand that has to be crossed for a stop out.

Set-up Grade
A- (More recent touches of the trendline acting as support would make it appear more relevant and less like wishful thinking)

 

Filled on PNC so far today. Range-bound trading to start the session

 

Filled on ATVI. Ran lower (presumably to take out some stops) before it reversed and executed my order:

 

Markets were higher. I made money although I didn't knock it out of the park. Lots of stock on my watchlist ran, but then again I've seen some stock on my watchlist get smoked on gaps lower that had nothing to do with Earnings Report surprises (Ford comes to mind) so it is part of the game. Price action on my existing positions were decent though so it makes for a promising rest of the week.


I was filled on CX at the close. It was lower all day but rallied into the close which is a bullish signal imo.


After work today I messaged e*Trade after work requesting my fees to be lowered. They told me that they have two tiers advertised on the website and I already qualified for the lowest tier and was trading at that rate so there was nothing further they can do. They weren't mean about it but I felt more like a number than a customer. They were losing my Regular Trading Account business but they will be losing my Roth IRA as well once I am acclimated with the software.

Did a good 2-3 hours of DD today. Don't have enough time to go into as much detail as I normally do for my trades since it's getting late. I will say that I am ramping up the risk in terms of entering the market. Looks like there is room to run again based on some of the setups I see. Here is what I am interested in:

DAL: Consolidating in a range after a good Earnings Report:



NTAP: Flag pattern



VRSN: Ascending Triangle. Obviously this is my favorite pattern. With this trade, I am getting in early because I think there is a line in the sand below me that won't be encroached unless there is a sell off. I am bending my rules a little bit and this is a play where I am fading short interest and I think it has the potential to run. I will be using my Alternate Account as a result:

 

Filled on all of my positions. Stopped out of CX this morning. Not seeing any great price action to start the day. I am contemplating only entering trades after the first 30 minutes of trading because I am getting filled and faded on the opening 30 minutes. If a stock runs without me at the open that is ok. I can play the retracement or scratch it and move onto the next stock.

 

Ouch. Stopped myself out at the open but -3.5R overnight:



I was due for an unlucky break I suppose. Back to managing my remaining positions

 

3 days until expiration and so far so good

 

No point in bitching and moaning about it. Price action confirms that it was indeed a great, high probability trade. I just need to tweak my entry a bit in the future.

 

Closed my positions in PNC


Also was stopped out of my NTAP position

 

Lost about 5R the other day due to DAL and some stop outs. Gained it all back pretty much on Friday last week. Haven't paid too much attention to the market since Wednesday because I feel anxious about increasing my long exposure at the moment. I don't like the Risk/Reward of getting involved in the market currently and so until I see a pullback/consolidation I am going to try my best to sit in cash or, at the least, decrease my position sizing 25-50%

I realized recently that I haven't been paying attention to some of the signals that I believe in such as Moving Averages to determine short term trend. I am due to review the last two weeks of trades as well in the upcoming week.

 

Killer deal on one of the Technical Analysis bibles. The kindle version is only $2 so I grabbed it to brush up on a few things.

https://www.amazon.com/dp/B00BWVKM4U?tag=slicinc-20&ascsubtag=d3d1272a06fa11e8abd4aa402ec8805f0INT

 

BBT
Trade type: Symmetrical triangle.

Entry & Stop Placement: Entry is based on the main portion of the triangle being surpassed.


Target stock price:
$58.1 (or wherever Reward is 3x Risk)

Concerns
Markets are indecisive right now but they haven't reached the point where it is time to start going short or anything like that.

Positives
Earnings Report was pretty recent so I can establish a position that lasts as long as the trend lasts.

Set-up Grade
A (I like the stop placement)


HBAN (Stalking)
Trade type: Higher Lows and Higher Highs

Thoughts: Entry point appears to be too far away for it to breakout and sustain the breakout tomorrow. Hoping for a rejection of a breakout tomorrow and then a true breakout Friday:

 

Jumped into ADBE

 

Filled on BBT:






Stalking HBAN still: