How I Made $41K Day Trading AMZN and SPY today (12/22/21)

What's going on guys? Welcome back to another video. In this video I'm going to break down my day trades for the day. So I today I day traded SPY and Amazon. I made a little over $41,000. We had strong momentum today from yesterday's continuation the market. So I kind of want to dive into that and break all of that down. So let's just kind of go into some of the trades I had. So these are all the trades. Started off trading Amazon, went into trading Spy right after pretty solid trades and once again just wanted to break that down and give you guys an insight. So first name Amazon. Right? Let's just go into Amazon. The first trade I took here, let's kind of break that down. So this was the first trade made a little over $27,000. A 41% return. 4R on the trade. Basically what the 4R mean just to kind of give you guys context and this is what every trader should really focus on is the risk perspective on a trade. This final number in my opinion does not matter. I don't care if you made 50k a trade, 200k a trade, 10k a trade, $100. It doesn't matter about this. In my opinion it matters about this. How much did you risk? Because obviously every trade we take we have a certain risk amount that we put out. So in this situation I risked about 6k, made about 27,004 R basically I made 4 times my initial risk amount. Made about 41% on the trade. So overall a pretty solid trade. So let's go through some of the entries and exit. So I take the trade around 9:35am Eastern time. So right when we go into Amazon we look into Amazon. What is going on? So this is giving us around 935 now. Why did I want to take the trade at this point Now a few reasons. Number one, if you guys go into Spy and we look at a larger time frame we can see the huge bounce we got from 451 two days ago into a strong rally coming into today. Right. We had the pre market highs also around the 46350s. So we had a pretty strong momentum move from this bottom leg up from the overall market. So Amazon was one of the names I was really watching for a small quick scalp play. So you know obviously we got a really really wide open. Right? Right. Heavy wide open. Without real momentum, without real direction in Amazon after getting that heavy wide open I start seeing us taking the high of the day out and I have a massive level around 33 93,392, we start seeing that level get taken out and obviously we start seeing some heavy rejection on the second candle. Now, the second candle, once I start seeing heavy rejection, I also see the bid holding very, very strong. So around 935 I take, I enter at 30 contracts. At 2191, 30 contracts is about 65k. Once again, guys, I know a lot of people go, oh, he put 65k in to make this. Listen, these numbers all become relative, right? If I risked 1000 would have made 4. If I risked 10k would have made 40, right? And these numbers adjust as depending on where you are in your trading journey, these numbers are going to adjust. So don't say, oh my God, he made 65k. No, he made 4 times his risk amount. That's the only thing we care about here right now. Obviously we start seeing the first move up at 9:40. At 9:40, once I start seeing this little strong move up, I'm expecting a nice little continuation. And obviously right when I see Amazon slow down, I'm like, listen, I'm going to take my money just because I know Amazon with the premiums move this fast, we start seeing a 20, 30% spike up in premiums. So right there I take about 25 off. I wanted to originally take 20 off, but because of this slowdown in momentum and because I have been risk off with with a lot of my trades because the market has not been easy, I was like, you know what, let me take most of my position off and let the remaining ride. If the remaining does not hold 3400, I will exit and I will go cash on this position. But once we see this huge move up and obviously this holds and I see this continuation, I should have maybe added more here. I think that was the trade. But once again, because I have been risk off, I did not go in as aggressive. I would usually go 60, maybe 80 contracts in on Amazon or something at this caliber. And I did not do that. Now obviously when you start seeing the next leg up, you guys can see a 943. I start taking my remaining position off. And you can also see there's not a massive difference in premium size. Right? Premiums did take a little bit of a hit on this pullback and I also sold a little bit way too early on this move up. If I waited maybe another minute, these were trading at 35, 36. Like I rushed to get out. So this, in my opinion could have been better and maybe I could have added some more Here. But overall, I think a pretty solid trade with maybe the execution on the last trade could have been better, right?

On these trades, I have another video on them. I'll break them down too. Now next we have another SPY trade. Not another SPY trade, but a SPY trade. Messed up here. Played shares accidentally, but whatever, same thing here, but next I played spy, right? Took his trade on spy. And if you guys look at this trade on spy, I made about a 3.4 R. I risked about 4800, so made about 16,557 on the overall trade. We look at this trade, started off red on the trade and then started going super green on this overall trade. Added with 200 contracts at 10.04on spy. So let's take a look at this. This was a little bit of a harder trade. I don't want to say it was, it was a great momentum trade or a great, you know, trade that was just rallying. So when you look at 1005, we start getting 1004, 1005, we start getting quite a, quite of a chop zone in my opinion, right? So we start going here, we start getting a chop. So my, my idea here was I'm seeing this 44, 63 zone hold very well. So I'm like, you know what we're getting move on. The downside premiums are taking a hit on the upside. Let me get a starter position now. Obviously my starter position on this one in heavy 200, 200 on this is 28k, which is still half of my position on Amazon now because I'm already up for the day. I'm totally okay on, you know, taking another trade even though I cut my size in half. And the reason I cut my size in half, like I said before, been playing a lot of risk off. Take that trade. We start moving up at around 1016. Once again, a way tougher hold than usual around 1016. The first little pop that we get above this high zone, I scale out, right? I know a lot of people when they take trades, they start entering here. I've been playing the market a lot different. I'm looking for these pullback zones where, you know, price is holding, prices stabilizing, especially when I'm trading options because the risk to reward ratio here, guys, is a lot more because keep this in mind, side note, when a stock goes down, right? And if I buy puts for all my option traders, puts are jacked up because of accelerated stock price. Now if a stock goes up and I buy calls and the stocks a call price accelerated. Now Typically for stock is falling and I buy calls, I typically get calls a lot cheaper because the bids can fill. Now if you don't understand that concept, you're probably a beginner, you're still starting out. But all the people that have been trading understand how the bid and ask for options really rotate very, very heavy on these moves, up or down. So a lot of times we start seeing heavy moves into a key zone. I may be going calls low, looking for that little bounce and making a 10, 20% move, right? So get in around that zone, start scaling out right here. That's where I start scaling out, right? You look at the scale out, take a 50% of my position off at 174. Then around 1038 I take another 50 off. You know, we go to 1034, we start ripping again. You guys can see 1038 right here. We start ripping again, right when we start ripping, I see a huge rejection. Rejection happens. I'm like, you know what, let me take another 50 off around 262 and then the remaining 50 got taken off around 1050, 50am Right? So you go right here, a very similar move and I just start scaling out. Overall, this was a much harder trade. Wouldn't recommend this trade to most people. But like I said for the day I had profits. For the day I was already up because of Amazon, up about 27k, had a four hour trade. So for this trade I was comfortable in taking. Typically if I was red or had a slow week, I wouldn't be aggressive with this trade. And then obviously my third trade of the day lost about 18%. Even if you go off percentages negative 112 R, I scaled in initially 13 K was going to scale in more and obviously once I want to scale in more, never happened. 11:17, I took the 466 call. So you go to 11. What's 16 with 11:16 I got in calls right here with the assumption that we're going to continue. And then obviously on the pullback right here or the leg down around 1124, I was like, you know what, let me just get out. And I just called it a day from right there. But obviously, you know, you guys even look at the price action here, just, just, just super messy action. Yes, there's money to be made, but I think for you to make money on days like this, it's extremely, extremely hard. In my opinion. Once again, just recapping everything. Amazon one trade, right? The big trade of the day and then second was the spy trade. That's really about it. And for everyone trading, just, you know, like I said before, look for your setups, look for trades coming to you. If you don't see anything coming, like, right now we're getting a very, very tough market, which is, you know, Wednesday, December 22nd, very tough market. And if you find something great, if not, just call it a day. So that's it. Thank you so much for watching, guys, and I'll see you in the next video.