Monday Morning Trading

Good morning. It's 6:33 on Monday, August 8th. I just literally turned the computer on and quickly went to record so I can make sure I record my thoughts before I get into a trade. Found my resistance level at about right here. Here's my support level. And what does that mean? That means that I'm looking at the last couple of areas where the price. Rejected right here and here. So this candle at 6 o'clock obviously was a big drop from 13,347 down to 13,255, which is almost 100 points. Again, I didn't see that. That was at 6 o'clock. I just turned my computer on. So my mindset right now is to take a glance over. I see NASDAQ's in the green, everything's in the green. I don't even know how that got up there, I don't even know what that is, uh, but everything I see is pretty much in the green. Again, what I'm focused on is where my resistance is at, where my support is at. I see that the MACD is pushing its way up. I see that this opened— I mean, see, it just opened above the EMA, right? Like it's stair-stepping its way up. And so that makes me want to go ahead and take the trade. So I'm gonna go to futures 5 contracts. Boom, it's 13,308. So I'm gonna go to like, let's see, let's go like to 13,3. Let's go like 82. Let's just see where that's at. That's like in 66. Boom. All right, so I'm gonna go ahead and just get in right now. Now my stop loss is At 82, which really didn't make— there's no rhyme or reason for that just yet, because I want to see if this was going to continue to go up. But it is below my EMA, and I'm okay with that. So I will say that I did not calculate, so to speak, how much that is, because when I looked at this, I'm pretty sure that it, it'll probably go up just basically because of the way I trade. But if not, if it drops below the EMA and touches this, then I'm okay with that, right? So, so now I'll just kind of wait it out. And now here's one thing that I did not factor in, all right? So we talk about the crossing of the MACD, okay? So what does that mean if I got in too early? I have to be willing to wait, right, uh, this through to gain momentum. So this may do a lot of back and forth before it goes to where I need to go. But when I look and see the MACD hasn't crossed over yet, then I have to expect that. What made me rush into that trade, right? So we're talking about my mindset. Well, one, uh, right, I just kind of sat down, so I will say that I probably, uh, did not— wasn't as patient as I normally would be. Okay, so that's one, uh, not, not the best move. Okay, however, I will have to just now— so to me what that usually means is that where I would have gotten a trade and it would have kind of got straight to where it's going, I have to now sit through it because I didn't wait for all of the confirmation or whatever. So I could even get stopped out. This trade may eventually even and continue to go up, but I may have to go through a cycle because I got in early. That's what that means when you get in too early sometimes. So to me, that's the lesson in that. And so now I just have to wait and see what happens. And I understand, I've already mentally accepted the fact once I realized what I did, that I may be in too early. And so now I have to literally— I could do— I got 2 choices. I could just jump out, right? And then start over, or I gotta take the sting. So here comes— here's, here's the risk, right? Right. So here's the risk right here. So it is getting pretty close, right? And so again, if it happens, I understand that I got in too early. So I have to accept that. And that is really, really important, you guys. You have to accept the fact. Okay. And so I'm just gonna wait this thing out. So let's see what happens. So another thing that we can take a note from is, right, so one, I accepted the risk. I was willing, uh, to accept the risk if it got stopped out. But I want to also point out, by me making the stop loss below the EMA, okay, see, even when it reversed, I was down far enough where, um, that, you know, I just barely missed, right, the touch, right? But that was being below the EMA. And so to me, and, and really where I should have really had it at really is at the— if I wanted to, if I wanted to be really on point, I really should have been at the top of this resistance level right here, right? Uh, you know, knowing that this is where it broke through. And so me feeling like that it may come back here and retest before it went back up. So I got a little lucky, I will say. You see how close it got. But I want to point out though that— but that is my mindset by having the stop loss back far enough below the EMA that even if it comes down to retest, right, you may not get stopped out because it may— it just, like I said, a lot of times it wants to come retest the price and then keep going where it's going. But the original reason why I took the trade, again, because it broke through my resistance— go back to why I took the trade. Even though I got in early, what was the reason for me getting in early? I didn't, um, I just turned the computer on. I wasn't really up right beforehand. I kind of overslept, right? So that played a part in it. Because I'm really familiar with everything, I was confident in written and taking the risk, but it's not the best practice. Okay, so, but I waited it out, right? I didn't get nervous. I didn't have anxiety, meaning like, oh no, right? I just accepted. Okay, but what I did say is that I believed that the The market was going to go up, and I believed it was going to go up because I told you I looked over and seen it was in the green, right? I seen you know it starting to head up. I you know I did the basic trade setup, okay? And so that to me is important. So I wanted to make sure that I talked about my mindset, right? And I talked you through it in real time now. Now I have— now I do— by doing all that, I haven't even scalped yet, right? So I even ran the risk of not capturing my points just to be able to explain to you how a real trade can happen and what you have to do. Okay, so now we're at 1355, so I definitely have an opportunity to scalp some points. Okay, I came in at 1318, so right now we're around $400. Uh, unrealized profit. Okay, so, and what is unrealized profit? Means profits you haven't captured yet. Okay, and so this thing is on its way up, so clearly I have a, a good opportunity to scalp here. I'm just trying to decide where I want to go. Time is 6:43, so we got about 2 minutes left into this candle, you know. And so I have some options. So it's at 1370, so I'm gonna go at least to Let's go at least go to 1350. Uh, it may drop back a little bit. Let's just let me just get my my first couple of points. Let's go to like 1340. Let's just get a couple of let's get it let's get it let's get a couple of points real quick just to uh you know stay in this trade as much as possible right you know now you have options. Right? When you're scalping, you could just scalp all the way up to where it's at. Like, you can get as close as possible to these unrealized points. So it's at 500. So, so right now, like, I could get out the trade. And I also want to put that— I want to make sure we talk about that too. We talk about scalping. Like, you don't have to try to manage the trade if you don't want to. It's at 5-something. I could just close out and take that if I wanted to. That is also an option, right? So we want to make sure that we exercise all of our options. Now I'm going to make sure that I click this because I'm ready to capture some more points in case this thing take a dive down, all right? Because that is possible, right? And so it's at 13,376. I definitely got room to go up and get a couple of more points, so I'm going to do that because I don't know how much farther this thing will turn around, right? We know it's on its way up, but it could change, right? So let's go up just a little bit. Um, now if I go right here, right, that'll be an even— let's go. So let's go right here. So that, that'll be like 30 points, okay? And I think that would give me a little bit of room, all right? A little wiggle room, okay? Because you see it's starting to push down a little bit. Okay, so you got options. Now again, I could have just took the— I could have left it where it was at and give this time to mature. I could have closed out and took the $500 at the time, or I could try to stay in the trade. So let's talk about what my mindset is and the options, why I, why I chose to do it the way that I'm doing it. So, um, I, I chose to move up a little bit because I like to try to at least get half of what's happening on the board when I look at it, right? So that I don't have a mind game with myself about coulda, shoulda, wish I hada. I didn't just close out, right, and take what it was because we're above the EMA. The MACD, right? You know, is is pointing up. It has some divergence. The histogram has momentum. Now, to look at the volume, the volume is in selling mode. On my chart, the yellow, the yellow is selling. The blue is in buying. So we don't know how much of a pushdown is going to be, but the indicators are showing that it's possible that it can keep going up. So that's why I didn't just go out and just close out, right? I want to give it time to push back a little bit in case it keeps going. the way that it was going. But the thing that's most important in this particular trade is that I'm not risking any capital. I'm already profitable. So now I can sit and wait. And the best thing I, I really believe that we can do is get— first, get to the point where you get into a trade where it's more likely to go the direction that you anticipated than not. The second thing is, is to capture some points soon as you can, right? Where you're not losing any, right? Where you're not losing any capital. Then how you manage the trade is really going to be up to you. Whether you let it go up some like I did and then just capture everything and close out. Whether you meet it halfway, you trail behind, and those are all personal decisions. Okay. But you have to do what you feel is best for you, right? No one can really get you to that point but you. All we can do is show each other examples of what we're doing and then watch what happens. So we see some selling pressure happening right here. It's a possibility that I could get stopped out now. You can see it's coming down to my stop loss. I've scalped about 30 points, right? So that'd be like $300. In this first trade. And be honest with you, that's good for me, right? That would, that would be good for me. Like, I would be done for the day on a Monday morning. When I'm, when I'm doing— when I'm trading my best, in my opinion, is when I take one trade and capture profits, right? I like to take— you know, we talk about the commission and fees, we talk about the, the lightweight, uh, emotions that happen by having to continuously trade or getting stopped in and out of trades. And so, so when I, when I can have one good trade and just manage that, I just feel better, to be honest with you. I mean, if you look at this candle right here, right, even though it opened about level here, you had to deal with some of the selling pressure, right? And so now this is important. Look what happened. Look what's happening. So now we're at another key level, right? So we can expect this to get, to get stuck right here. So I'm not mad at that, right? So see how that selling pressure is, right? And so I can see right now that It's possible that this might go down. So if I'm gonna get any more points, this would be the time to do it, right? Because you can see that. So now it's 6:50. What I'mma do is it's at 3666. I'mma at least go up to now. Let's go, uh, I would like to, I would like to get to that 58, right? And the reason why I want to do that is because I can see a little pressure right here. So if I'm gonna grab any more points, I better do it quick because I'm starting to see a little resistance. It doesn't mean that it won't keep going, but I gotta be— I, I want to be mindful of that. So that's just being in the trade and paying attention to it. That's just trading one-on-one. Now we still— our indicators are still showing that the momentum could be going up, but when I see this right here To me, that's an indication. I'm gonna play it safe, right? So I'm gonna do my best to capture a little bit more points. So I did that. So now I got 40 points out of this trade. I am about 30 points behind. I feel like I'm in a good position here. Okay, it's 6:51 and we're still moving up. So let's see how much we can get out of this. And so what are we observing here, right? We see that this resistance level is here, okay, and it hasn't closed above it, so we don't know if it's going to keep going. It's at 1395 now. I'm back here at 1358, so I definitely have some more opportunity here. And because it hasn't closed above this and we don't really know, I want to be mindful of that, right? So there's nothing wrong with me going ahead and getting a little bit more points, right? Right, because I want to benefit from my trades, right? I want to stay in as long as possible, but I also want to benefit from them. Okay, so it's 6:53 now. Let's check and see what's happening. So I did— I moved my resistance level up, right, because we had a little bit of, uh, price rejection right here. So we wanted to be mindful of that. If it closes above this, that's a good indication that this strong buying movement that we have, right? So the the volume is in a buying space, right? The MACD still has some divergence, right? Okay. So we we we have some opportunity here. But this is still you know we still want to pay attention to this level where we've seen the rejection happen. It went above it, but unless it closes above it, we're not sure if it's going to continue with the momentum. And so that's where you have to have your decision-making in, like, how would you know? What do you want to do? Don't be afraid to check your position. Okay, so we have $700 plus of unrealized profits. Okay, I have a decision to make. I could close out right now and get the $700. All right, that's always my option. I'm choosing To see how much this is going to push up. That's my personal decision. Out of that 700, I know I have at least 500, and I know that because I can see, right, how much, uh, points I've scalped. So essentially, I'm leaving about 200 and something on the table with the mindset that it's possibly more. Like how much farther are you going to move away from the EMA? And with this divergence right here and this movement, how much action do we have? So we see it opened right kind of equal to here. So but we see that there also has been some some seller rejection here. So we could expect a little wick, right? But what am I looking at? I'm looking at the resistance level. It closed above that new resistance level. So we possibly could ride this out. Now what I'm doing, what I'm thinking, you know, it's 6:55, right? So now we are 25 minutes into the trade. We also know that there will be a time where people will start coming in and taking profits. It's at 396. I'm down here at 70. So what I wanna do, let me just go up just a little bit to 78, right? A little bit over 78, because I know that that gives me some more profits, puts me right around the resistance line. Mm-hmm. Okay, so it might come back and want to touch this. All right, but I'm cool now. Where I'm at now, I know that I got profit secured. Okay, I know that it—I know that at some point the sellers might want to start stepping in. So now I'm just going to pause for a second. It may turn around, touch me out. It doesn't matter. One trade today. Right? I minimized my commissions. I was very skillful about it. Even when I got in the trade a little bit early, I was able to talk myself through it, understood the assignment, knew what I had gotten myself into, was willing to accept, right? So if that initial move had I got stopped out, I was already willing to accept that I had got in early. And what was getting in early? I got in before the MACD had crossed over and gave us any type of confirmation. And so that was here, right, where it came down and it came down and touched— it came down below the EMA. But because I had my mag— because I had my stop loss below the EMA, I increased my chances of not stopping out and being able to be in this trade as long as I've been in a trade. I paid attention to new resistance levels, okay? I'm also looking at this level here now, right? So anytime it starts to slow down in any area, I start looking at that as a new resistance level, or if it was the opposite direction, as a new, um, support level, right? So you can see just like here, when this dropped down, it start— you know, it started to— in this area, it was— it couldn't get past, you know, down here at 13,254, right? So what did it eventually do? It couldn't go, it couldn't go, boom, and it went the other way. We don't have that completely yet, right? So here was 1, 2, 3, 4, 5 for it to reverse it. Here was 1, 2, 3, and then it got a little bit more momentum. Okay, so now we see around the 13,400 area it's starting to, you know, slow down a little bit, a little bit of pushback here. Okay, we're just mindful of that. We're still in the trade pretty good, we're about 20 points back, so we're giving it time to Try to figure out what it wants to do. Look what's happening again. We're at the level. So it's about— it's level again, right? So 1, 2, 3 in this area, right? Possible new resistance. So the first thing I want to do is put it in perspective. I don't want to play a hoping game. I don't want to— I'm not trying to make nothing happen. I'm observing what's happening. Okay. Just like here. 1, 2, 3 for right as it starts dancing in this area, it starts to want to turn around. Same thing happening here, right? And so it's at $13.87. I'm pretty close, $13.79. So I've gotten pretty much the, the majority of this trade based on where it's at. So I'm okay with that. And you got to be okay with your decisions and how you move. And it doesn't mean that it's not gonna, you know, the sellers won't take any profit and it won't continue to go up. But I'm staying focused on where I'm at in the trade. Okay. And so we're just focusing on— we took a trade to the upside, we're managing it, we're paying attention to our levels. There's the, the hit my stop limit like I anticipated. Go to positions, we got $609. Go to activity from 6:35 to 7:01. Okay, so it's about 26 minutes. Of trading, 26 minutes, $609. That is the life of an EID trader. That's we learn to get in, get out, get on about our business for the day. That is our basic trading one-on-one. So you've seen the setup, you heard the mindset, you watched me manage it. So it's very important for you to believe in what you've learned and run the plays. And then you get in, you get out, and you get on about your business for the day. If I was going to take another trade, I'm gonna take my support line. I'm gonna move it up to right here. I'm gonna tighten this range up. And if I was going to take another trade, I'm gonna wait because this is still up, right? Divergence. Say if I had just sat down, right? Say if I missed that first trade, I would start over just like this, and I would wait for this to break my resistance line. I would wait for it to close above this line, and then I would take a trade. But I'm not gonna do that because I ain't messing off my for sure money trying to get some more money. Peace.