$8.8K Day Trading This ONE Strategy | Full breakdown

I made a little over 8, $800 today and in this video I want to walk you guys through my game plan, how I prepared for the day, things I've learned, where I got in, where I got it and just give you guys the full breakdown of today and how it ultimately went. So with that being said, let's dive into it. So today I made about 8, $800. As you guys can see, the only name I traded was Spy. Here's my broker you guys can see made about 88.97. And what I want to do is I want to walk you through the day. I want to walk you through where I got in, where I got out. So first and foremost let's start off from the basics. The first thing I want to break down is the pre market game notes, right? So before I start on any day, before we even go into profits and look at the profits, let's start off with the pre market. So I took a snapshot of how the pre market was looking before the market open and this is the snapshot I had. Now I also take notes alongside with what I think, what assumptions I'm making, how I'm going to kind of tackle the day, how I'm going to tackle the market for that day. And with this pre market snapshot, this is what I took away from it, right? I saw the market looks flat, seems range bound. In PM pre market you guys can see pretty rangebound. No real heavy action because we had a big sell off that happened yesterday, right? Watching for continuation move around 398 zone. If we break the 398 zone I will be looking for a continuation towards the downside. I will be looking for a sell off. That's what I mean by that. Expecting to see some action back and forth at the 400ish zone. So 4000 for futures, around 400 for spy. If we start seeing some action there it is possible and that is something I was anticipating around this whole area. So for me this 398 to 400 was all range bound. I went into the day saying I will be risk off unless opportunities present itself. Now today was a little bit of, I don't want to say a tricky day but I messed up the day with my first two opening trades, right? So as you guys can see, let's just go to my first two opening trades. On the first two opening trades I was red. I was red. Lost about 7%, lost about 13%, about almost 1R on both trades. My size wasn't as heavy. My size on this was way more than my first two trades. If my size was heavy, these would have been a little bit worse, right? So I sized down on these because it was the first few trades, I understood the market was not gaining direction. The reason you see size increase on the third trade is, is because I got a little bit more confident and I was more comfortable in the directional move. Now, typically if these first two trades, market just closed, if the first two trades did not happen, right? And I wasn't read or I, you know, I wasn't put in mental chop, this maybe would have been 400 contracts, maybe 500 contracts like you guys have seen in my previous trades, which could have been, you know, a 20k day, maybe a 30k day, depending on the overall trade. So first thing I want to start off with are my first two trades. And the reason I want to start off with that is because I've mentioned this in the past, A lot of times we traders mess our day up with our first or second trade, right? We take on a terrible trade. We rush the entry. You know, we don't have a setup. We just want to put on a trade. And typically that can mess up your overall day. Now, like I said, I have been trading for a little over nine years, and because of that, I have learned to kind of push away that mental depth that I put on. And I know how to deal with it a lot better than my first year or my second year of day trading. But if you are a beginner, these are things that will carry over. And if you do struggle with this, you need to create a plan to avoid it. Just got a little off topic. But anyways, let's go on to the first trade. The first trade bought spy calls. Want to walk you guys through the trade went in some light size, about $5,700 position. This was kind of like right on the Open, right? 931 got out. 932. So to show you, you know, the option premium movement and everything, right, right here as well, we have the option premium chart here. I want to show you how quick and, you know, quick this trade was. So right on the open, about a minute in, I got in calls right now, realistically, you know, looking back at it, there was no real setup. But at the moment, you obviously create a setup in your head. And I didn't follow my game plan, right? So another, you know, mistake I made here, you know, did not follow, let's say game plan, didn't follow game plan, right? Another mistake I made. I should have followed my Game plan. My game plan was to wait for those ranges to break out. But I got an early entry, I got fomo. And the trade setup that I took or anticipated that the trade setup, it was, was an opening drive play. Now, realistically, it does not categorize in an opening drive play, right? So I had no confirmation, right? And this is me as a trader being honest. Obviously, hindsight is 20 20, and I get that. But in the moment, it's very easy to look at a trade and say, this is what's coming up, this is what's going to happen. But when you look back at it and you start going through your list of rules, you start understanding, wait, this actually did not make sense. There was no setup here. So let me walk you through the setup. I thought, and why that setup does not exist. So the setup I obviously thought was we started opening second candle, we started seeing heavy, you know, buying here, some sort of buying pressure kick in. Right when we started pushing to the upside, I said, hey, it looks like we got an opening drive play. It looks like we're about to break 399, 400 zone and start making a strong move up. Now in the moment once again looked great, right? And this is what I want to really, really narrow into.

That's what we as traders want to start breaking down. We want to start breaking down. What was our thought process in the moment and what actually happened? So in the moment, thought of opening drive play. When I come back to it and I look at it now, I'm like, wait, there was no opening drive play there. We didn't have a gap up. We didn't have any strong momentum in the market. Why did I even take the trade? I took the trade because of fomo. I carried it over into today. And you know, even yesterday, I had a missed trade yesterday. I didn't take on any trades on Monday, but I had a missed trade. So I think a little bit of that missed sell off carried over to today. So that messed me up. Even though I wasn't biased. You saw my pre market note, I wasn't really biased. I had my levels set out. So that caused me to immediately get in. And then right after I got in and the trade was kind of looking shaky, I was like, you know what, Omar, let me get out. Let me go cash. Let me not put myself in a tough situation. Went in 50 contracts, in and out. Got in about A$14, got out $17. Here is the option chart as well. This is something new. We added in tradezilla. You Guys can see how crazy these 400 calls were, right? These, these took a massive hit, especially on the flush. That was my first trade. You go to my second trade now immediately I change my stance, right? So a few minutes later I go around 9:36, I'm like, hey, I'm going to go and I'm going to short. So we go to 936. I get the first rejection on spy around 933, right? When we get to 936 around right here, I'm like, okay, we got the rejection. I'm going to get in my short position. And I did get in my short position. I got into my short position, lost about 13%, got in 936, got out 937, got in at A$5, got out at 91 cents, put in 5050 contracts and just didn't like the kind of no confirmation zone, right? Because we were trending in a no confirmation zone. And obviously I carried my last trade over here. So we go to 937 and I'm like, you know what, let me get, get out. Let me go cash. Let me watch the market and digest for at least a couple of more minutes, be it five minutes, whatever the case is. So I now tell myself, hey, I can't trade for at least the next five minute candle close, which is at 940. So that's where my third trade comes in, right? So one rule, I want to stop there before I go on to my third trade. So a lot of times when I have these rules that I talk about, these rules were developed by identifying my patterns, my history of mistakes I make, how I let a bad trade bleed into a good trade or a good trade bleed into a bad trade or the next trade overall. And I've learned to create certain things for myself that prevent that. So me taking this trade around 937 being the final entry, the next trade, which is where I did make money about 42%, I was like, okay, so on this trade, I'm not going to take a trade until the next five minute candle. And you guys can see my next trade comes in at 941. 941. I go in with a little bit more confidence. I see a better setup at 941. Also at 940 we get the five minute close. We're getting some direction. We come here at the five minute close after looking at the five minute close too. We, we're seeing, we got multiple rejection. On the upside, we're seeing that continuation Push on the downside, I'm like, okay, this is looking great. I'm a little bit more comfortable on this move. So I am comfortable in taking on a position. So I go in 200 contracts at that price point, and as I take that position at 941, I start writing this move down. Now, once again, I've said this in my past videos. There's times I'll get an entry maybe in here. There's times I'll get an entry later. And people are like, oh, how are you able to predict moves? Can you predict these type of moves? And I wish you could, but realistically you can't, right? Because there's so much unknown that happens in the market. So if you are watching this, I don't want you to think, well, how do I predict the sell off? I didn't predict the sell off. I don't want to say I predicted anything. It's just not possible. Right. What I look at, the way I look at trading or the way I look at trades is where can I get a good entry that would minimize my losses? Where does that good setup or good play come from? And where would I have to take that entry to possibly have that trade formulate? There's no magic secret. There's no special anything. I don't want to put that in anyone's head where, hey, you look at this and that and you can identify this sell off. No. Yes. There's probabilities and you manage risk and size. And you get more comfortable on taking this trade looking at certain factors. But there's no Such thing as 100% in day trading, like trading overall. Like, there's no way I can 100% say we're going to sell off, we're going to go up. Just the probability game, right? So when I get in around 941, it's the first sell off. We start seeing the hold. I start seeing continuous weakness around 399. I'm expecting that flush to happen into 3.9850. That's my target alongside with 3.9822. Right? So when we start going, we can see around 944 is where I take off my first position. So 944, after we already get a big move, I start taking some off. And the reason I start taking some off at 944, I'm up, I'm up about $11,000. So me being up $11,000 on my overall position, obviously, mentally, you know, your premiums are moving rapidly. You guys can See the premium chart up here too. You start seeing your premium start moving rapidly and you're like, okay, well this is a good move. Let me take some off. So at that point I scale some out. And I mentioned this in the past two guys I'm a big fan of when trades go in my favor, I will scale out. I don't want to catch like, I would love to catch the whole move, right? I would love to short here and an exit there, short there, an exit there. But what I have realized is even if I catch a piece of this, even if I catch a piece of that, which I didn't, and I wish I did, I'm good, I'm happy. And that's what I want to aim on doing as a trader with size. So me being able to do this, I go in short, take some off at 944 and then take a little bit more. The remaining off at 945 with 200 contracts. Now when I sold the 945, did I think there was going to be a reversal? Not really. I went in 200 contracts, 945. I got out my remaining 40 contracts, took off 160 here. Once I took those size off, I was completely cash on the trade and like I said, scaled majority of it off around 944at $1.60. And these contracts, guys, when you look at these contracts, these contracts went all the way up to 216. At one point I got out, my big exit was around $1.60. So if I waited another minute, I, I could have caught another 50 cents on the trade. Now I'm not playing the what if game. I'm just showing you how we as traders sometimes look at a trade and say, well, I could have caught so much more, right? And that happens. And like I said, just take a piece of it, scale out and take it from there. That was the second setup. Continuation sell off, morning top. You know, even if you look at some of my morning top reversals, continuation kicked off here with the morning top reversal. Very similar setups, very similar ideas. Now a few things that I want to now break down in my overall day. Great trade. Happy with this trade. Invested 2300, made about 9042%. About a 3 yard based off what I risked off my stop loss right now there was a lot of mental biasness that happened and that's what I really want to walk you guys through. Right? This is the important part. Right? So had a good game plan for the day. Just to recap my Day had a great game plan, right? After having a good game plan, didn't execute that game plan on the open like you guys saw in the open. I took a trade where did not fit my game plan. Let the first trade carry into the second. Realize that in real time, this is where people mess up. They don't realize this in real time. After I realized that in real time, I was like, you know what? I'm gonna wait until the candle closes. We go to 10 minutes and we get some market contact, some market direction before I take on a second trade. And essentially, that's what I did. Waited, took this trade after 9, 49, 41, got the comfortability and took the trade. Now, the second part that I want to talk about, very important. So after I took this trade and I got done mentally, I wasn't done with the day. So right here, a lot of mental FOMO happened. I'm going to walk you guys through this mental FOMO now, right? Hesitation. I dealt with a lot of hesitation. So this day, if you guys have seen some of my trades in the past, a day like this, with the movement like this, typically I'll have a 30 or a 40k day. I'll have more size. I'll have two, three great trades. Today I had three trades. Two are bad. Size was inconsistent. Size wasn't heavy. Size wasn't, you know, where I usually trade in terms of size and my execution wasn't where I usually execute with consistent days. So when we start getting here at 398 again and we start consolidating around 398, I, at this point, mentally created, you know, a way where I was like, okay, I'm looking at the 395, 396, maybe 397 options for a spy. 397 strike, right? And I'm like, I'm looking to short. So here is where I started mentally looking for a short, and I wanted to take the short. Now, what happened here? I hesitated, and I'll tell you, I want to walk you through the hesitation, right? I hesitated on the short because I was unsure of where this was going to go. But I was more on the side of I have the probability of it's going to go down. But I didn't. I didn't react on the. On the setup that created major FOMO. Once we started going to 397, right? Once we started going to 396, once we start solely bleeding. Now, what happened around this 10am Mark, this zone right here, I got Into a weird funk where I was like, okay, I missed this third trade. I felt like it was too early. I should have taken the trade. I was ready with 400, 300 contracts, ready to take on the second short. It didn't happen. I didn't execute. I hesitated. Now, during this whole time, the hesitation played a big role in my head. And that hesitation was very close to causing me to go on tilt. And those trades didn't happen. Thank God. Right? Thank God. I, like, you know, in an interesting way, ended with these trades, ended with 8,800. But there were times where I wanted to start taking short positions here. I wanted to start putting on more positions here. And if I did, this would have chopped me out completely out of the trade, like 110%. I would have gotten chopped out of this trade. Right. And I share that because a lot of times when we have missed trades. Yes. You know, we won't execute everything even if it's the best setup. Sometimes hesitation happens. It's very easy for now, us to start making up the number where I'm like, oh, man, if I shorted that, I would have made 20,000 or 30,000 or 4R or 20 or 30, whatever it is, however you want to look at it, right? And that becomes ultimate thing that slowly deteriorates, deteriorates us as day traders for the day. And my way to handle that for the day is either walk away if you can't manage yourself, if you can't manage your emotions, call it a day. Like, you know, if you're not walking away and coming back, you know, because sometimes you need to step away or just call it a day, Just say, I'm done. I can't. And essentially that's what I did around 11. I said, you know what? I don't want to get caught up in chop. I don't want to get caught up in taking a stupid trade. Let me take the day as it comes and walk away. Now, I know some of you guys may be watching, say, oh, well, you had an 8k day. Phenomenal. You did great. But no, let's take a. Let's put. Push that to the side. There's days out of the year, not out of the year. There's days out of the month. There's about five days out of the month or maybe six days out of the month at times where we get very high probability setups. In my opinion, those five days when we get those high probability setups, our job as traders is to execute those and, and maximize the profit on those days that we can. The other days when there's no setups, our job is to be risk off, protect our capital, preserve our capital and not be super aggressive and burn through that money. So today, in my opinion, was a day where I should have been more aggressive, I should have executed a little bit better and I should have had a bigger day. It is what it is. I'm not holding on to it. I'm obviously going to clean that up mentally and move on to tomorrow. But I'm just explaining something. Days like this don't come every day. So when they do come, you as a trader need to maximize them. And understand that once again, out of 20 or 20 some trading days, out of a month, depending on the month, you will have about five, maybe six great trading days. Some days, some months it'll be more. Some months it'll be very low. But your job is to maximize on those opportunities. And when you don't, it's okay, reset, come back, learn from it and take it from there. With that being said, thank you so much for watching. If you did watch up until now, I would really appreciate it if you give this video a thumbs up. And with that being said, I will see you guys on the next video. Thank you.