I finally feel 90% back. Can’t wait to hit the gym this morning and spend some time meditating.
Last week I began wondering if BTFD was coming back and yesterday I wrote Friday looked like they accumulated all day for a rally this week. Yesterday turned into a gap and go though I was unable to join on a large gap up until late in the day securing a 1000%+ return trade in the last 15minute of the market.
I’ll show you exactly how in the Education section.
With 3 green days, secured without a dip, the question on my mind, is does market go for 5? Does it keep going until highs are tests or new ones made?
All dips were bought again yesterday so in theory the answer to these questions would be yes at least that is what it looks like.
So how do we profit from this? Same as always. We follow process and be patient. I don’t like chasing longs on gap ups or after large runs until I see strong support or a failed breakdown reversal. I’ll also keep an eye out for major resistance for a failed breakout to short.
Remember your process as a trader is to find, define, and follow a repeatable process that over time yields more profits than losses. My process works but doesn’t provide tons of trade opportunities in a day. But the ones it does provide, provides solid risk/reward opportunities.
Let’s get into the review and then into ideas for today…
Introduction (for New Readers)
Welcome to my blog on Two Hour Trading, your daily source for market insights and trading opportunities. In this blog, I will provide you with a comprehensive analysis of the market, educational lessons, and trade ideas to help you stay ahead in your trading journey and best of all doing it less than two hours a day.
What Subscribers Get
Subscribers to this blog will receive daily updates on market analysis, educational content, and up to three trade ideas each morning, all based on real-life examples and my personal approach to trading.
NOTE: screenshots from chat are from Edge Trade Planner. A platform available to THT PRO members.Join Us for live commentary and planning. Note my goal is to actively trade less than 2 hours a day finding 1 to 4 great trades a day.
What is Two Hour Trading?
It’s my system for finding and executing trades while spending less than two hours a day trading. My goal is to earn 100-300% on the capital I risk while waiting for 1000%+ gain trades to setup. Key benefits:
High Quality trades with great reward vs risk
Avoid Overtrading and losses from it
Trading to Win vs Trading to Not Lose
Stacking the deck in your favor
2024 Alert Leaderboard
(I’ve decided to include a leaderboard so you can see what potential the 2 Hour Trading System has)
The following is based on entry alerts.
May 6 - SPX 5170c $3 —> ($300—> $1100 potential)
May 6 - SPX 5175c $0.40 —> ($400 —>$7000 potential)
You don't try to make $100,000 ...You don’t start by saying, I’m going to make the biggest most profitable trade and turn $1000 into $100,000 and fix all my bad trades before.
You say, I’m going to plan and execute 1 trade as perfectly as I can today. You do that every single day, and soon you'll have a $100,000 and likely much more!
SPY / SPX
Market didn’t dip at all yesterday to provide some gap fill. It barely back tests 513.50 and then kept going. Per my rules, I can’t go long. so I have to wait for end of first hour. We then got a triple top and a failed push so I can plan a short. However since this isn’t at a level, I have to be ready to exit quickly.
Its super important to also learn from trades that don’t work. Paying attention to option pricing also is a clue into demand.
Here is the SPX 5140p for the same period. notice how 2.20, on a new high held price around 10:50. so we get in at 2.50. I added size anticipating vwap break at 2.85.
We the dumped it got to 3.35. But here is the thing, it quckly reversed and imho If strong demand was coming, this should have shot to $4 very quickly, but there weren’t any put buyers. So I quickly got stopped out at 2.50-2.70.
No problem, I’ll take the loss. I kind of followed process, except for a major point. 514.50 wasn’t a major resistance level. So while the price action implied the potential for downside, since it wasn’t a major level, one should not get married to short/ gap fill thesis.
After this we need to wait for after lunch.
After lunch was tricky, I still had a bug up my butt for a short and tried bears calls but quickly got stopped for small loss and flipped into a scalp long from 3.50 to 6 during the 515.20 test and then the balance got stopped at 4.50 for profit and 2.50 for loss.
As this point, I figured too much chop, and not worth trading and planned to hang up hat, but I decided to chill and watch what develops.
As soon as 515.20 reclaimed around 3:45pm I alerted I was taking 5175c for 0.40. This was a no brainer bet. the SPX equivalent of 517 was 5184. So I had 0.40 risk for possible $8.60 gain. I take that bet. possible 20 bagger
Remember contract selection matters on risk/reward. Especially last 15 minutes.
By the tame I made the decision to go long the 5170c were $3… so I went 5175 which game incredible risk/reward
Guys this isn’t rocket science. The levels work as a guide. The art comes in interpreting the price action. Once 515.20 reclaimed, if a squeeze comes 517 should come next before next dip.
SPX 5175c dipped to 0.20 and then ripped to $7 and settling around $6 at the close.
My plan was to sell 50% between $1.20 and 4. selling 30% at 1.30, essentially made it risk free. $4 gave me 10x, and then just started placing orders randomly between 5 and 9 to secure gains on any spikes that may come for the last half.
TSLA
We also got a short in on this name as it followed process. Gave us a solid paying trade in the first 2 hours of trading.
Follow the sequence above. Who can answer why I’m locking 80% around 11-11:15am?
A: Premarket support zone and possible reversible time frame and fast gains.
Opening resistance was around $2.70-3. So upon reaching that , one should make sure to lock some profit. Remember the stock has made a new low, but the option pricing isn’t making a new high. That is part decay and part “resistance/weakness”.
Trade Ideas - Plan for Tuesday May 7
Stick to process. The process and trade setups I teach works. Rinse and repeat over and over again. There will be losses. Any good system will have them. Being systematic also means the gains will repeat and come again too. If you keep changing your system/process trying in an effort to never lose a trade, you will never get to where you want to go.
Crypto name swing ideas
BTC is back at 64k. as long as 60k can hold hawking dip buys on COIN, and MSTR.
