How I Made $107K Day Trading $AMZN || 1/27/22

What's going on guys? So in this video I want to break down my trading day. So today I day traded Amazon. I made about a hundred and six thousand dollars. These are all my trades. I want to dive into these trades, break them down one by one and just kind of show you guys the inside of each trade, why I took the trade, why the stock was on my watch list, why it exited and you know, all the dynamics of this. So with that being said, let's dive into the trading day. Right, so as you guys can see, took three trades, made 25 grand on the first one, 66% A4R. The second trade lost 8 grand, lost about 1.2 R which is more than my 1R. Obviously anything over 1R just means I did not follow my stop. So if you take a look at the stock, if you take a look at this trade, my stop was at 21. I actually exited at 21.65. So I kind of, you know, went a little bit over my stop, which is not a good sign. But if it doesn't happen consistently, it's okay. But if it happens consistently, this is a big red flag. Right then my last trade made about a 3R, made about 89K. So both of my winning trades made 63,000. And as you guys can see on both my trades I kind of really, really sized up, especially on the second one. Had about 86 contracts, massive for Amazon, right? My second trade was about 142k like that, that's massive. So I'm going to dive into everything. So first Trade was at 938. So let's kind of dive into this first. Right? So, so as we go in this, let's break it down. So looking at Amazon. So whenever I trade Amazon guys, I do look at the overall market. So if you guys have been watching the overall market, we've been getting extreme crazy volatility, extreme movements. On the downside, we also had the FOMC yesterday with massive, massive rejection after seeing a huge move up. So looking at the overall market I just kind of gauge direction. I just gauge what I think may possibly happen. So on the open what did I see? Right, so we saw a nice little rally on the market. Looking at spies, looking at Q. Q. Q, we saw a nice little strong movement on the open and right on the first five, ten minutes I saw a nice hold on the pre market key area around 437. That was my key area too. As I saw that hold I was paying attention to Amazon. So you guys can see we Get a nice move up. After seeing a nice move up, we get a nice push down and a nice hold at 437, right? Seeing a hold at 430, seeing QQQ's hold is what gives me confidence on watching certain names. So the first name that I obviously had on watch or the only kind of my main watch, Amazon and Tesla, I'm watching Amazon. Amazon is not reacting to this sell off. I don't even want to call it a sell off. Let me take a step back. This move down, right? Amazon's not reacting. Amazon on the bid is holding this 2790, 2798, 2800 level very, very well. So seeing that is where I take my first trade. I'm like, you know what? I like this hold on Amazon. So seeing this hold, I get 20 contracts at the 2850 calls, right? Which was around 938. So we go to about 938. You guys can see right at this time, this is where I take my first position. Now, once again, the reason I took this position is because I saw that this level was holding very, very well. And watching this level hold, my only thing was, hey, if Spy makes another leg down and Spy is unable to hold this move.

Out of Amazon, and also if Amazon is on, if Amazon is unable to hold this 2798, 2792, if you want to call it 2790 zone, I'll be out, right? And I'm open to taking that loss anywhere below here. But I'm liking the bit hold. Now, obviously alongside with that, we see Spy holding you guys open up Q. Q. Q. Overall market is holding pretty strong. So with that being said, I take a position of 20 contracts right here. Now, I played a little bit out of the money, right? I played the 2850s. Usually when I play these type of plays, I'll play in the money. I would play 2800, but I just like the 2850s. I like the open interest, I like the volume. And I was just trying to target for a bigger move. And typically these are the names that will give you a bigger move. However, if you do play out of the money and you're wrong, these premiums could get heavily crushed. So keep that in mind. So take my position at 938. About 10 minutes later, right? I take off at about 48. This is where I take my first position off. I take about 15 contracts offer at 3160 and 948. We go to 948. And as you guys can see, once we Start making this move. Me as a trader, I'm not looking for a bigger move. And I always talk about this in my videos, right? I'm looking to scale out. So we start seeing this and I'm looking for a nice scale out. Now another thing, if you guys notice, implied volatility is also going down right now, typically for option contracts, you guys got to keep this in mind. When we have option contracts and implied volatility starts going down a lot of the time, especially in a market like this, your premiums will start taking a hit, especially if the stock is flat. If the stock is flat, your premiums will really start taking a massive hit, right? And I've seen that happen a lot in the past few days. So sometimes when we do get an elevated VIX or elevated market, paying attention to premiums, paying attention to the implied volatility, you know, does you very, very well. So once again, going back to the trade, we start seeing the move up, no sell there. Another consolidation. This is where I should have possibly looked to add. I was just scared to add because we broke high of the day. I don't like to play high of the day, pre market highs or whatever you guys want to call it. And then on the next continuation, breaking the 2830s, which was my massive level, that's where I took more than half off. I took about 75% off. And then at 950, about two minutes later, right here, I took the remaining position off. So that was my first trade of the day. And you can see the first trade of the day made about 25k. 66% made a 4R. What does the 4R mean? That just means, you know, based on my risk, based on my stop, my potential stop, you know, I was risking about 6k. But since I made 25k, I made 4.34 times my initial risk amount, which is solid, right? That's trade number one. We then go to trade number two. Now this was a losing trade. What happened here? Let's, let's kind of break this down. So same thing with this. Took about 20 contracts. You guys can see, kept my position size consistent. So around 10:36, I took a short position. Let's just kind of open it up here, right? So around 10:36, I took a short position. So once we see 10:36, what happened? So, you know, I'm seeing Amazon start. I start seeing Amazon push down. As it starts push down, I see the first retracement. As I see a retracement, I'm like, hey, it looks like it's a retracement. As it looks like it's a retracement, we might see a continuation. So I add puts right here, right? So around 2836, 2830. So I'm like, you know what I'm going to add puts. So I add about 20 contracts at $2800 at 2496, right? And the trade starts going down. And you guys can see at one point I was up about $4,800 on this trade. Around 10:39, at this candle, I was up about, you know, 4,800, give or take, because, you know, the trade was going in my favor. However, it hit the same bottom here, same low, and started reversing. Now, one thing I could have done better in this trade, in my opinion, is when we did make this move down, I should have maybe taken 10 off. And then when we came back up here, I should have, you know, given the other 10 up. So if that happened, I would have maybe walked out break even, or I would have even walked out green. That's why I talk about scaling in and scaling out. So once again, took the first 20 contracts. Here I was up on my trade. We kind of hit the same bottom area again around 2820s. And then we have a hard reversal. And then on the hard reversal, I take off my full position at 2065. My stop was at 21. So I gave up a little bit more than I initially wanted to give up. So I took two trades. By now was thinking about calling it a day up about 19k, 16k, whatever this is, right for the day. Go on to my last trade. Still watching Amazon, still watching the overall market, right? We start watching the overall market. And you guys can see last trade happens around 1204. So we start going to 1204, right? This is where, you know, I start watching this. So around 12, we hit 12 o'. Clock. As we hit 12 o', clock, you guys can see what starts happening. We already kind of topped out at Amazon. If you look at Amazon's chart, you can see opens, nice continuation move. Unable to hold this area and dump. So it makes a new high as it makes a new high for the day. Retest that high gets rejected trades in chop. Now, when I saw, when I saw it trading in chop like this, this is where I as a trader was like, okay, so I'm seeing it. Trade like chop. What is the market doing? You know, I, I, I always want to pay attention to the market. Even when I look at the Market. You guys can see tough action in the market. We touch a top at 441, come right back down and then we just start chopping in around this whole 12 o' clock area. And you can see right around this 12 o' clock area, we start chopping. Sorry, we start fading away very, very hard. We start coming close to this 440 area. So I'm like, hey, listen, we're coming around this 440 area. I'm looking for some weakness, I'm looking for some rejection. And then, you know, seeing that on Amazon, I, you know, looking at around 1204, 1209, I added 1210 added. So when you start going to through these time frames, right, let's go on the one minute time frame. Let's go through these time frames, right? I take my first trade around 1204, add 31 contracts, then I add more, and then I add more. Now the reason, once again I'm adding is because you guys are seeing this whole around 11 to 12 o'. Clock. We're seeing a lot of chop, a lot of slow moves here. And then once we start getting to the 2860s to 2850s, that's where I'm like, you know what, I want to play. The downside, I think we might see a new low or I think we might see a bleed into 2,820s. So once that happens, I'm like, you know what? If I am playing a move like that, I want to play out of the money, which is why I play the $2800 puts. And you guys can see I'm scaling in 1204. I add, you go to 1204, right? Let's go to 1204 right here. And by the way, if you guys look at the time difference, the time difference on this computer is different because this is still based on California time. This is on New York time, which is what I traded on. So just, just, you know, giving you guys an update there. But anyways, you guys are looking here. You guys go to the time frame. First position enters here. Once we see that break 904, we keep going down 12, 9, 1210, 12, 1209 and 1210, I add more. So you go to 1209, right, which is right here. Add some here, add there, add some there. Once I add, you know, some positions there, I start scaling out. After my first scale out is at 12:17, you go to 12:17. You can see after we have this big massive push down, I scale about 20 contracts out. Now the reason I scale out is because once I scaled out right here, I already locked in 12,000 on that scale out, which to me is a big win because I'm locking in profits. And I'm able to play a bigger move by knowing I've guaranteed profits. And that's how I'm able to allow these moves to ride out all the way. You know, obviously if I sold everything in my highest price point, I would have made so much more. But that's not how trading works, guys, right? Start scaling out. Start scaling out again at 12:34. Start scaling out at 12:35. You know, we go to 12:34, 12:35. You guys can see we're already making these moves down. I start scaling out as soon as I see momentum start slowing down and I get out the trade. And I always have a rule whenever I have big days, even on my last recap video I showed, I'll have like two or three trades. You know, like two or three trades this, this day. I'll make a video on this day too. This should have been, by the way, this right here should have been a 40, 50k day. Like where I got in the price point, where I got in with this SPX trade. If you go to this time frame, right at 2:39 Eastern Time, if you go to this, these contracts literally a minute later skyrocketed. So if I held for another five minutes, I would have sold these at 60, 70 bucks and made tons of money. But I hesitated. I got scared. I'll talk about in another video. But you guys can see one or two trades, right? Not being super aggressive. That's my Overall day with Amazon 106k once again, just going through these trades and the only thing I can kind of put out there is, guys, we've been getting extreme volatility in the market. Volatility is good and bad depending on if you know how to trade it. You also have to be careful with trading options because options can really, really, really hurt you. If you do see any sort of, you know, premium crush or volatility go down. There's a lot of companies that have earnings that's ultimately destroying option plays too. So you guys really got to pay attention to what you're trading, how the premiums are moving and so on, right? And in terms of trading wise, don't go on and look to trade 10 names or 10 stocks or, you know, 10 different. Have put on 10, 20 trades. You need two, three good setups. And that's really about it. Like on my first setup, you know, I had the opening drive play. You guys can see. Just to give you some context, you know, we opened up strong. We didn't have the ideal momentum into it, but a nice hold and that push up that hold area, I don't even want to call it an opening drive flagship. I'll take that back. But we see a nice hold around this 2800 once we see that hold. And I've seen these bid hold areas work very, very well. And on the pop up or on the rip, I'm. I'm getting out, right? I'm selling the rip. I'm buying the dips. Like it's. It sounds very simple, but it's. You know, obviously in the moment, hindsight, 2020 looks. Everything looks easy. But in the moment, the key thing is execution. The key thing is, you know, protecting your downside. The key thing comes along with everything, with that. So just, just. I guess that's really about it. If you guys like this video, just give it a thumbs up. And thank you so much for watching, guys.