How I Made $2,050 Day Trading $TSLA || 7/18/22

Today I made a little over $2,000 day trading Tesla. Right. So I bought puts and made two grand on the overall trade. Had an 8% return, 2.27 R trade as you guys can see here as well. So with that being said in this video, I'm gonna break down where I got in, where I got out, what my game plan was. I also screen recorded this whole trade. So I'll walk you guys through that too and just show you guys the entry and exit and things of that nature. When with that being said, let's dive into my trading journal and check out my stats real quick. So used about $24,000 on this trade, risked $900, made two grand, which gives me a total of 2.27 art return which is phenomenal. The setup I used on this was a morning top reversal. And as you guys can see, my entry and my exit, phenomenal entry in my opinion. And exit was also pretty solid. Made two grand, 8.37%, traded 10 contracts. Right. Looking at the trade, here are my entries and exits. So let's just kind of map out the entries and exits. So mention was around 10:06 Eastern Time and the exit was around 10:12. Right. Which is you guys can see right here. So that those are my entries and exits. And now I want to dive into why I got into this trade and what the whole game plan was. Right. So let's start from the beginning. Now as I mentioned before, whenever I day trade now names like Tesla, Amazon and so on, I always focus on looking at spy. I always focus on looking at qqq. I always focus on the macroeconomics of the market and where the market is kind of looking for the day. So this day was a little bit rougher and kind of harder to trade than usual in my opinion. Right. But just looking at overall price action, looking at SPY because you know I, I like to gauge direction of SPY first and foremost just to understand what is going on. We kind of had a strong rally pre market, right? Nothing crazy, but we went right into my main level of 389s right on the open. Spy was not able to take that 389 out. Right. We had a huge range about range bound movement until 389. You go to QQQ, right? With pre market activity and things like that. Same thing. Q. Q. Q. Right. We weren't able to take pre market highs out. We're also close to my, my you know, massive wall area of 296 on QQQ and the 296, if you guys did watch the recent videos, kind of talk about this 296 wall, pretty big wall. And that's where we went into today, right on the Q's. Now going back into Tesla, right? Looking at Tesla pre market, we're seeing Tesla obviously, you know, be flat, be above its 735 level. But on the open, right when we open, Tesla had a pretty strong move out the gate. Now the interesting thing about Tesla's, you know, move was Tesla gapped above Friday's highs. This was high, the high of Friday of 7:30. We gapped above that. And I talk about gaps very precisely and you know, paying attention to what level we gap up to or gap down to is very important most of the time. If gaps take out recent highs, yesterday's highs and things like that, there's a high probability we can see or we will see an opening drive play. So for Tesla we saw the opening drive play. The only downside was the momentum on the market wasn't there to carry on this move towards the upside, right? And that was a move I would have maybe taken. I just wasn't in front of my computer, I was getting coffee and ran a little bit late. But that was the first move I would have taken. So obviously I missed that. And once I missed that, I start observing market action, I start looking at what the market is showing me. So what do I start seeing? I start seeing consistent rejection at the 750s on Tesla. And I also, guys, keep in mind, right, besides the 750 rejection on Tesla, we got Tesla right there. Let's go to spy. Look at spy, right? Spy is unable to break that 389. You go to NQ. Same thing with NQ, unable to break that key level. You go to QQQ, unable to get into those key zones. So we're at a massive resistance point, massive level on the overall markets with Tesla unable to break its key level, having a hard time seeing liquidity dry up, seeing volume slow down most of the time. For me that presents a fading move. It presents a move where I can start playing the downside. So that is where the trade idea kicked in, when I started seeing ton of action, not going anywhere and the market looking weak. Right. So once again the trade came from me for sitting in front of the computer for about 30 minutes observing the market and seeing if there is a trade. So a lot of times you guys see a trade, right? Just to kind of give you guys this, you see this trade, it's a six minute trade. Yes, that was the six minutes I was in the trade. But besides the six minutes I was in the Trade, this was probably a 30, 30 to 35 minute hunt. Like I was watching the stock for 30 minutes precisely, watching the market precisely for 30 minutes. And then the trade came as a scalp for five, six minutes. Right. And you need to keep that mindset present for yourself that a lot of these trades that you take, even if they're five minutes, they're not actually five minute trades. You're watching different. So quite some time, be it pre market, be it yesterday's action, last night's action. And you let these trades formulate these levels, right? So that's where I was, you know, kind of watching this trade and built that. Now going into the trade, what caused me to enter, obviously seeing weakness at the 748 level, 747 level, seeing tons of rejection allowed me to get in at 1006. Now the reason I didn't get in before 10:06 is I mentioned this before too. A lot of times I wait for 10:00am A lot of times at 10:00am when I, we start seeing some institutional moves happen, we start seeing money moving to the up or downside. So once that happens, it can start, you know, messing with the move. So I sometimes wait five minutes in, maybe 10 minutes in depending on the move to see if institutional moves are coming in or not in the market. Right. And if there are, that trade idea gets invalidated. So for example, if we did start seeing a rally breaking 750s, a rally in spy, rally in QQQ, breaking the key levels, I would have probably went long and played the upside of this into 760s plus. Right. But obviously that's not what happened. We started seeing rejection, we started seeing weakness. So going to the live trade video, right, let's play this. So this is where I look to build my position and just, let's just kind of take a look at price action. So right now I have zero contracts, right? So here you go. This is where I, where I enter.

I joined the bid at 2440. I got in, so I'm in at 2440.

As I, as I'm getting in.

This is me holding through the position and see the premiums are fluctuating, Obviously they're going to fluctuate up and down. And let me show you where the move starts formulating. So this is where I start seeing ES gets rejected. NQ's making a new low, right? In recent low, obviously after the opening level. This is giving me confirmation. This is going into vwap. All right, great. But seeing NQ bleed out like that, seeing Spy kind of take out the opening low areas, giving me confidence. I'm also watching Apple, I'm also watching Amazon. Seeing weakness from them also somehow confirms this sort of move. Obviously this could just be a pullback at this moment and then reverse as a midday mover. And we, we've seen that happen with the market a lot. But with this particular move, seeing weaknesses at nqq Q nq, I mean, or nqqqq and seeing rejection at this key zone of Tesla is giving me confidence to hold through. Now this trade does get a little bit tricky. You guys are going to see how action hangs around VWAP hangs around 743 over and over again, right? As it keeps holding, you start seeing the bounces on nq. And a lot of times when I start seeing these crazy wicks, right, the way we've seen today, I will probably not take another trade. And if I do, I will size down. And if I do, I'll be very, very cautious. Cautious because we're not getting these consistent, healthy follow through moves. And I love seeing follow through moves. When we don't see follow through moves like this and we see like choppy action just like the way we are now, it becomes very hard to trade, right? And now look, this is where it gets interesting. I'm already in 10 contracts, right? We're seeing, and we're seeing NQ take out this low of 12, 130. If that low of 12 to 12, 130 gets taken out, we start breaking the VWAP going into 700 and 40s. There's some potential to be made, money to be made there. And once again, this is not an ideal market condition. I want to be very clear on that. These are not ideal market conditions. These are not days where we're getting momentum. These are not days where we're getting follow through. These are the smaller plays, less size, less plays, right? So right now I'm still in my position. Let me just see if I can make this bigger, right? 26, 25, up about two points on my position. About 1700 bucks, right?

We're seeing Q. Q. Q. Is going to the low of the day. Heavy bleed on nq, right?

Heavy bleed. You guys are seeing this. He's following through as well. And now with these slower moves, by the way, I just want to pause here for a second. With these slower moves, guys, a lot of times when I see moves like this happen, I'm Very hesitant on holding through. I'm very hesitant on writing a full position out because the confirmation of moves aren't there. We're seeing way more reversals. So because we're seeing way more reversals, I'm like, okay, great, I caught a good move, made two points, maybe made three points. Let me take this and just like stay alive. I'm not looking to have a 20 or 30k day. And if you guys looked at some of my past trades, right, you'll see those past trades come in because we have follow through days. Like I don't have 140 or 50k day on choppy days. And today in my opinion, we did have a choppy day, we did have a tougher, you know, day to trade. And also you have to keep in mind I trade until 11am, right? So for me, I'm kind of done by 11am I have a cutoff period. I'm not in front of my computer until 4pm so we had some action until 4pm I'm not trading that. So for me, like based on my time zone and my time period I traded, it was flat, right? So here you go. I'm still in the position and now this is where I take the position off, right? So once we get to this point, right, this is where I took the full position off. And the reason I took this position off at 2645, we're seeing a bleed. We're going into 740. Honestly, this is also another thing, and I mentioned this before, the right thing once again for me to do going back to the trade, maybe scale, scale that 5 and then scale another 5 if 7 40s did not break. But if you guys have been following my journey recently in the month of July and previously I haven't had a lot of momentum in my trading and I speak about this too. I'm trying to have small wins build into bigger wins. So I'm just trying to build momentum. So taking a 2k day, a 3k day, a 4k day, 1k day, 2k day for me is building up. And I've done this for past eight, nine years and I understand what it takes. I'm not going to go into this trade or any day and aim for 10, 20, $30,000 day when I haven't been consistent the past few months, when I haven't been showing up every day, right? When I haven't been having those big 10, 15, 20k days, I can't put on the same size. I need a little bit confidence to come into My trading and me taking these small wins of 2K500, 1500 allows me to now go into next week or next month and have bigger wins. I just want to clarify that too. And just to show you something about that, right? Here's my, here's my month this month, right? Still once again not a lot of consistency first week. Red Red started this week off with a clear mindset. 885 didn't trade this day. Didn't like action. Two trades, 473k day, didn't want to trade Friday just you know, Friday zero DTE same day expiration kind of rough. Went in today. Two K again. And I'm just trying to build. That's it. I'm just trying to build, get comfortable, you know, get loose with the market and that's really about it, right? So that's why I ultimately took the 10 contracts off. But once again going back the right way to do it for someone that is being consistent is take half off and let the other half react to 740. Let it close around 740, right? So I closed the full trade out. You guys can see you're seeing NQs break, QQQs break, spy break. You know, Amazon's fading, Apple's fading, but nothing is really in sell off panic mode yet, right? So with that being said, I have to be cautious of making sure I get my small wins that build into ton of momentum, right?

Same thing. We keep going.

And now this is just aftermath. I'm out, I'm cash. And obviously once your cash and the position goes to 28, 29 bucks, you go into like, oh my God, I wish I, you know, held my whole trade. It's okay, it happens. Now look at that. This is interesting. We start seeing the 740s hold. We start seeing the 740s formulate here and start holding pretty, pretty well, which is ideal right now. This at times does need to happen. After seeing a heavy six point move down. We do need to see some consolidation, some hold, right? You're seeing NQs pick up, you're seeing QQQs pick up. We see a nice healthy downtrend. If we see a rejection, we could continue. But now let's just fast track and look at what happened to the action right after I exited. So I exited around here, right? So I was cash. You can see now look what happens to the position. Our position gets very messy. We try to break again all day and I'm not trading after this time, right? And you look at it we finally get the fade of towards the end of the day. So that was the trade, right? And just a few tips that I can share you with you guys on this trade are the following, right? Number one, when you guys are trading, keep in mind there's different market conditions. We'll have days where the market is extremely, extremely good, very easy to trade. And some days we have markets that don't have follow through moves, don't have liquidity, don't have volume, don't have movements. Right. Those days either. Stay cash. Depending on where you are, if you can navigate, great. If you can't and you're kind of in the beginning stages of trading, make sure you are staying cash or if you don't stay cash, be able to read what is happening with the market. And if you do take a trade like I did today, keep your size small relative to, you know, your account size and how you're trading and also make sure you are taking profits. Don't see days like this where you see a 10%, 5%, 15% or 20% move. And don't say I need 100% move or I need a 40% move. No, take the 10, 20% plays on flat dates, even 10%. This was a 8, 9% play, a 2.3 RR. I'm taking it. I'm good. I like the green, I like the 2K, I like the confidence booster. Because it's not only about P and L, right? Because a lot of people would look and they'll say, well, you had a 5, 6, $7 million year last year, right? Which you know, I have to make a whole breakdown for. You had that big, big year. And after having that big year you didn't like, having a 2k day is relatively very small. And I'm like, yes, from a mental point of view, I feel that, I do feel that. I'm like, wow, I'm having a 2k day where I came off having a 50k day this year, I came off having 100k day this year. But I also understand the stage I'm in now is a lot different. So the stage I'm in now, I need to build these small wins. Let these small wins compound when the market is great and my wins compound, my momentum compounds and also my confidence compounds on me. Being able to read this market and know like, hey Omar, I can read this market pretty well. I can then come in with a little bit more size. Now instead of it being a 2k trade, it comes, it's a 4k trade instead of it being a 4k trade, it goes to maybe a 10k trade instead of it being a 10k trade, 20k trade, maybe that 20k trade with more size or same size even. But a better opportunity lets me have the big days back to back. But if during times like this I blow my account and I overstretch myself and I try to trade how, how I was trading last year or even the first month or the second month of this year and I'm unable to sustain it, what do you think is going to happen to my trading? My trading is going to get destroyed. Right. And that's very important for everyone here watching to understand, like understanding where you are in your trading. Even if you were profitable, maybe you're struggling now. And I know a lot of traders this year around this time are struggling. They're having a hard time finding their edge, having a hard time finding momentum and you know, consistency. And I'll be the first to tell you, like for trading for nine plus years, I've seen markets get hard, I've seen markets get easy. There's up times and down times. I'm not just talking about seeing a down market, down markets, a lot of money to be made, but I'm talking about it in general having clear cut moves. We haven't been seeing the best moves in my opinion for the way I trade. And I'm like, hey, I'm going to stay alive, I'm not going to push myself, I'm not going to overextend my hand and try to go and have a big day and then get, you know, Instead of making 2k, I go and have a negative 10k day, negative 15k day and now my confidence is at negative 50 and that will be the ultimate destroyer of my account. And that's not what I'm trying to have. And if you guys are going through that once again, just take a step back and regroup. With that being said, I hope you guys enjoyed this video and I hope it provided some insight. Thank you for watching.