Monster gap down. Is it time to buy the dip?Trade Ideas for Apr 7
Have you ever had a Spectre Special? A trade that does 500%+ in under an hour?
Friday gave us multiple bags, but I was off on the end of day target. Given the profits, I left runners that essentially got stopped out. I missed the last 15-30 minute to identify a spectre special but after so many monster green days for my account, I felt I was tempting fate so called it day early.
I used SPX 5040p as my primary vehicle for short SPX. Here are the trades we gon on it.
Round 1: $3 → 17
Round 2: $2 → 8
Round 3: 1.50 → 8,10
I left 20% runners that got stopped at 100% gain. So that minimized gains a. bit. still solid multiple 300-500% gainers.
Unfortunately I missed planning a spectre special for the close which could have been 30x, but given I was sick, I’m not sure I would have caught it.
Speaking of quitting earlier I didn’t realize it at the time but I was on my way to getting sick. Today. I’m super sick. Been sick all weekend. Been trying to sleep since 8pm yesterday and I think I maybe got 1 hour of sleep. Just tossed and turned all night and coughed. That essentially takes me out of trading today because I’m not mentally rested :(. I’ll work the levels today and try to make commentary, but I don’t trust myself to execute well. I’ll share my thoughts on what I am looking for to buy the dip or to get short.
The big issue to avoid trading the open today is that IV is at 120% so that is a no-no for me. I don’t have the numbers to know how far OTM contracts will move.
Limit down potential?
If the market decides to continue to dump heavily today we would need to hit somewhere around 469.80 to hit the 7% limit down. Will it happen? At the moment I doubt it. We are nearing buying interest levels imho. But its anyone’s guess. If the whole world starts announcing tariffs against the US we could get fresh all day selling.
Premarket SPY dipped to 480 and got bought and is currently working on filling the gap. currently at 497. I want to get long at 480, but contracts were so expensive wasn’t sure what to do. in hindsight, should have take long using /ES.
What is Two Hour Trading?
Two Hour Trading is 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 set up. Key benefits include:
High-quality trades with excellent reward vs. risk
Avoiding overtrading and losses from it
Trading to win vs. trading not to lose
Stacking the deck in your favor
Trade Recap for Fri Apr 04
GOLD BOLD ITALIC = price action signal
WHITE REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
Solid trading day. Missed the Spectre Special payout in the last 30 minutes!
GET EXCITED. I’ll be publishing a book called Trading To Win: Stop trading to NOT lose. Title is still in the works. I plan to include exercises to help you improve your mindset and your trading. Leave a comment or send me a message if interested in the book.
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Education - How to Join a Strong Trend
The process I typically follow for joining a strong trend are as follows:
All day grinder: join on dips to 20ma
Multi-day grinder:
Join either on support test of morning lows/failed breakdown reversal
Join at vwap mid day or end of day
Keep it simple. Don’t chase, wait for support levels for great risk/reward entries!
Education - Systematic Profit Taking
How do I take profits? I keep it relatively simple. Depending on the entry and range to the next levels I typically with take profits 50-100% of my profits at 3-10R and then raise stops to above entry with a goal of letting runners take me to the next level or 2 and to then reload if I believe we are consolidating before the next leg.
I then repeat the same process on the reload.
Trade Ideas - Plan for Monday Apr 07
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.
Ideas
Guys I’m super sick so my ideas might be off today. Overall given the gap down and grind I was looking for a gap down reversal at the premarket lows. But now we will have to play wait and see, especially with IV so juiced. If you want to scalp you might need to take 300 strikes OTM on SPX for quick scalps for 50-200% gains.