$40K Profit in 5 mins | Truth About Trading FOMC Day

Wasn't planning to make a video for today's trading day. So today I made about 40 grand trading spy and I wouldn't want to count it as a good trading day. Now I know you guys are probably like, what are you talking about a good trading day? You just made 40 grand. Yeah, but trading FOMC day a lot of times, in my opinion, in my opinion is kind of like gambling, right? And if I'm being honest, after my second trade today, with how crazy the premiums moved, with how crazy everything fluctuated, I was just like, like, is this real trading? Do I have real conviction behind my plays? Am I playing a risk reward game? Like what am I doing? And obviously my third trade today, which I had a spy gave me a 33 hit, took about a 20k loss and you know, based on what I expected to lose and blah blah, blah, didn't make sense. So ultimately what I want to talk about on this video is I just want, I just want to be very transparent with you guys, right? I want to be honest in terms of I don't want to point at a 40k day and say, well, you know, I got in here because of this and because of that. Realistically, the only trade that kind of made sense was this. These two trades did not make sense at all. Like I kind of threw a dart at the wall and one of them stuck. Now if you go back to most of my trades in the past, that is not the case for anyone that is new here that is looking, they're like, what's going on? Right? Is he just throwing the dart in every trade? No, like, no, it's just this, these two trades. I know that's the case and I want to be honest and transparent about that. And like I said, I wasn't going to make a video. I was just gonna say, you know what, whatever, not a day worth to make a video. But I was like, you know what, I want to talk about this because this is something I feel like isn't talked about in the trading community a lot because the moment someone makes money it's like, oh look, I made 40k or look, I made 10k. Let me talk about how I made it. So I'm going to talk about what not to do. So let's go through the trades first, right? Once again, 40k on spy. Let's go through these trades. So first trade, very small size, right? This was the first trade. Let's just go through it. So this, this was ultimately the first trade of the day. FOMC happened we got a big flush. Right when we got a big flush, I felt like we were bottoming out. I bought calls and I sold the calls on the move up. Okay, sounds pretty straightforward. Now realistically, there wasn't any sort of price action read. Once again, being super transparent, no price action read. I just, just gambled. And, and the purpose of this video is you're not going to find any setups. The purpose is to show you that we sometimes as traders need to control our ego. Even after like I had a 40k day, I need to come here and share that with you guys because I can't come come here and say, well, I bought here because I, I had a high probability knowing that this was going to go up. I did not know like at all. That's why I don't trade FOMC day. I don't trade these crazy moves. The tape is too aggressive. It's very hard to read anything y sit here and say, well, you know what, when I got in here, I, I saw we were at the low of the day. I saw we were possibly forming a bottom around, you know, two or five eastern time. But essentially, does it make a great trade? Not so much. That was the first trade, right. Second trade. Then I went in and this is like the big trade where I made about, you know, 57, 56 grand. So I got in at 1430, which is about 2:30. So I got in here, I got calls and I got out right here. 300 contracts at 1430, whatever. What is this? I can't do 1434. So I got in right here and I got out right there. So I got in, I got out. Now once again, my game plan for the reason I got in here was we're coming to a low of the day. I was like, you know what, we're holding this level very strong. I think we might have a high probability of going up. Once again, being super transparent. No setup, just playing levels on fomc. While Powell is about to speak, what I like don't recommend to do this at all. Like, I do not recommend you guys to do this. This is not advised. Right. And but once again, I want to walk you through my mindset and also share, you know, this mindset is not good. Even though it worked out. So that was my trade once again worked out. And this is typically what happens with traders. They'll catch a move, one time, it works out, they'll catch another move and it works out. And this is what I want to ultimately show you guys, right? Works out, works out, you obviously get overconfident. And then when your moves are not sustainable and they're not strong and they're not essentially real, it's very hard to get caught up in the final trade. And now I take the final trade, and in the final trade is where I get burned. So this is the interesting thing about the final trade. So I got in around $2.35, around 248 contracts. Try to get 250. Didn't get filled. But $2.35 is where I got in, right. I put my stop at $2. Mental stop. Hey, I'm going to exit at 2. So let's go through this. This is what ultimately kills those traders, right? So 240 right here. I get in calls. I'm like, listen, we're trying to make break up. We're holding. I think we're going to start holding, and we're going to start making the next move. Was it up? No, this was the put. Yeah. So I'm like, hey, we're going to start making the move down. We constantly see rejection here. As we're seeing rejection here, I think we're going to start making the move down, right? So as I'm making an assumption that we're going to make the move down, we start seeing rejection. I get in contracts right here. I get in at about 250, contracts at 235, and I'm like, you know what? I'll get in at 235. If I'm wrong, I'll stop out at $2. All right, great. Guess what happens. It makes a crazy move up at 242. This is 242. So I get in here. I get out there. My stop, projected stop for this option play was $2. Where did I get out? I got out a $57. I was expected to lose basically 8,600 bucks. I lost 20 grand in about two minutes, about 33%. So ultimately, terrible trade. Now, a few things I want to share, I want you to take away from this, because there's no setups you guys can take away. There's no good things I can give you from, like the trade setups itself, because essentially there weren't any, right? But this is what I want you guys to really narrow down and understand, right? Number one guys, when you guys are taking trades, right? Have a plan. I didn't have a plan. Essentially, I got in front of my computer. I'm like, powell is speaking. We have a big day. I need to go and I need to go Take some trades. And that's what I did. Despite me being green, that's what I don't want people to get confused with. I don't want people to. People say, well, why is he saying all of these things? He's green, he's made 40 grand. No, guys, this is the part of trading where people get trapped. This is where so many traders that I know get trapped and they get stuck, right? So this is the pattern that happens. They'll have a green trade with no real game plan. They'll have another green trade with no real game plan. And then comes that one trade, right? Because if you don't have a game plan and you're just trading blindly and your confidence and ego goes up, you're going to get hit in the face, right? That's what happened. I lost 20 grand. Now, once again, you can say, well, you still made 40 grand on the day. Now let's look at this, right? I made 40 grand because this trade was able to run and I was able to maximize it. If I did not let this trade, maximize could have went really, really bad. That's number one. Number two, if I. Right, when I was in this trade, if I held this trade for maybe a few more minutes, that's the second thing, right? I got out on this candle, right? If you go to this candle right here, I remember the option contracts went to $1 below $1. So this would have been probably, if I had to take a guess, a 40k loss in that moment. If I obviously, you know, exit, exit my contracts and things like that, this would have been a 40k loss, right? And it's like, then what typically happens to a trader afterwards? You know, obviously a trader takes a loss, they take one trade, it doesn't work out in the favor. Obviously you go on tilt. That's the thing. You go. Until you go, I was wrong. I'm going to go trade this, you trade that, you trade this, you trade this, you trade that, you're on extreme tilt. Now, instead of me even having a flat day, I go to a negative 50k or 40k day and I blow away all my month's profits, if not one week's worth of profits. And that's what I want you guys to avoid, and that's what I want you guys to be aware of. So, once again, a few things. When you have green trades or green days, go back and be honest with yourself and say, listen, I had a green day, I had a green trade. Great. Did I actually, like, have a good setup? No, I Had no setup. So if I go here, realistically, I don't care what the trade outcome is. I don't care. Even on the 50k trade, I'm going to be honest. I'm going to say I didn't have a setup. I could sit here and I can lie about all this I want, and I can flaunt about it, and I can talk about a big day. And no, Omar, come on. You did not have a big day. Like, it wasn't a good trading day, right? Be honest with yourself about that. Recap your trades. Look at the setups, right? Because you can get lucky one day, you can get lucky two days, you can get lucky three days. But if you want to make it in this game for a long period of time, in my opinion, luck is not going to be on your side. So when you have these days or these trades or whatever the case is, you need to ultimately just be honest and be real with yourself and say, well, that wasn't a good trading day. And not get to a point of tilt. And if this happens, like, see, the great thing with me at this stage of my trading career, I was aware enough to say, listen, I'm just trading nonsense. There's too much fluctuation. Like, look at the stock action. Like, yes, I wish I shorted here. If I shorted here and I held, I could have made. Come on. But who was going to short this? Who's going to hold through all of these moves? Who's going to get in here? It's very hard, in my opinion, with my trading style. For other people's trading styles, it might work with my trading style doesn't work, right? Same thing with here. Maybe I got the low of the day, but the risk here was not sustainable. The risk here was not predictable. The premiums were fluctuating so much and so fast that at one point, it became very hard to, like, I thought I was going to lose 8k. I lost 3 times my initial risk. One or two more trades on tilt here. I would have destroyed my whole trading day. If not. If this trade didn't work out, let's just say this one trade failed, right? Instead of me losing 56k, right? Based on my stop, right? I got in at. I got in at 239. I thought, my stop's gonna be a two. Let's just say my stop here did hit at 150. I'd have lost $26,000. My biggest red day in this month. Last month, I had a 24k loss. So not. Not Overall, but would have been a big red day. And that's not what I as a trader want to be put into. I don't want to be put into predicaments that I am, you know, looking to fail. I want to be in predicaments that give me the highest probability to succeed, right, with the best risk tolerance that there is that I can basically look at and kind of take it to my advantage. And that's ultimately once again what comes with being honest with yourself and just going back and you know, saying, hey, where did I go wrong? So yeah, so that's what I wanted to ultimately share here, honestly. Just an idea that hey, I, I, I made 40k, looks great. I know people are going to see the title of how I made 40k and be like, wow, he made 40k. Wow. No, like there's days like that shouldn't have happened. But I'm aware of this going into tomorrow now, right? So I'm, I'm, I've, I've took some notes, I wrote things down, you know, I take notes on the whole day, I break it down and I go through my thought process. So I'm well aware and focused going into tomorrow so I don't make stupid trades or stupid mistakes. Again with that being said, I hope you guys found value from this. I'm sorry I didn't have like a full real trade breakdown. Just wanted to share something that I thought was, was or could be very helpful for majority of traders, especially traders starting or even traders in this game for a while that sometimes things go your way and luck plays a role and you're like woohoo. But your job is to just be honest and cut it out. Thank you for watching. If you guys like this video, I would really appreciate it if you guys can give it a thumbs up. So thank you everyone. I will see you on the next video.