How I Made $47K Day Trading $AMZN || 2/7/22

So today I made about $47,000 day trading Amazon. As you guys can see here, I day traded the name twice. I played the upside and then I played the downside. I made about 50,56 000 on the first trade, about A4R and lost about 10000 on the second trade with the negative 1.6 R which wasn't the best and walked out with a gross profit of 47000 as you guys see here, trading just Amazon. So in this video what I want to do is I want to break down my whole day of trading. I want to break down why I got in, why Amazon was on my watch list, you know, where I got in, where I got out and just kind of break down the whole trading aspect of today. So with that being said, let's dive into why was Amazon on my watch list, right? So why was Amazon on my watch list? Why was that the main name I wanted to trade? So, so if you guys remember, Amazon had earnings last week, right? So last week. And by the way, today is Monday. The trading day is today for Monday, February 7th, right. So forgot to mention that. But anyways we had earnings. So when we had earnings, you guys can see we had a crazy gap up day going into Friday. Pretty interesting action on Friday. So seeing all that action kind of made Amazon a prime candidate for today. And I always talk about this, that whenever a company has catalyst or any sort of earnings or anything at all, right? That name may not have a play the next day, but it will possibly have a name in the upcoming days or weeks. So even going into tomorrow, even going into this week, Amazon is going to be a name that I am watching, right? So now what kind of was my pre market game plan? So obviously me looking at Amazon, me identifying the levels I know a lot of people play high of the day breakouts, love the day breakouts and things like that, I'm not looking for that, I'm just looking to see any sort of play on the open, right? So going on to the open you guys can see no real action pre market. I want to see where we start forming a base or where we start forming any sort of rejection. So my first trade came from seeing Amazon open, right? Let me see if I have a chart without any other thing right here. So I look on the open, so we see the Open on where the open go right here we see us open and we open right at Friday's close or on Friday's close around 37.50, which is right here. That's the level. We kind of, kind of bounce around. We start hanging around that 3750. So let's take a look at the 3750 we open, make a move from 3170, 3150, make a huge 20 point move down, which is massive. We start seeing a massive bid hold. Right? Right around 3150. Right? We start seeing this 3150 area hold very strong the first three, four minutes. So seeing this area hold gives me a little bit confidence. Now, if this area didn't hold very well, we didn't see strength kicking in, we didn't see buying pressure possibly kick in, we didn't see the bids hold and showing some sort of interest with a spread on asks going higher. I would have probably not take the trade. I would have not had interest. I would have maybe looked to play the downside, right? But seeing that bid area hold, I'm automatically like, okay, this looks like a good opportunity. So I am going to take my first position. My first position I entered around 934 for 14 contracts is 4,175. I did put about 58,000 to give you guys context because I don't want you to see, oh, he made $56,000 on this trade. Did he use 2,000? No, I used about 108 grand on the total trade. Made almost 50, more than 50% and had an R multiple of almost four. So I want to first let me kind of give this some context, right? And I'll be the first to say it. And I have these crazy things mentioned of how much I made a day because I, I know what gets people's attention, right? I understand that this is what's going to get attention. I kind of have your attention. I guess I want to go into the proper metrics, the proper things to Talk about net ROI. I made 53% right R multiple. I had almost the 4R. These two are what should measure a trade's performance. This, as of right now, irrelevant. This, because I know a lot of people focused on, oh, how much did you put in? How much did you make? No, like the ending result, end result is not what, what matters. It's how much did I risk on this trade, right? I risked about 16 grand. Right? Let's put that in forefront to. I risked $16,000. I was willing to lose $16,000 if I followed my stop at 38 on my entry. Now, me risking 16,000 and me netting, me risking 16,000, netting about 56 gave me a R multiple of 3.88. That means I made 3.88 times my original risk amount on this trade based off obviously what I have to set my stop loss. Yes, I used $108,000. Fine. But remember guys, size starts increasing. Someone that even used $10,000 on this trade, they would have made 5K, right? Netting 53%. Someone that used 20K on this trade would have made $10,000. They would have had a similar R multiple if, let's say I did the same trade with less size. So this stop letting this discourage you. Also stop chasing this. Chase a good R multiple, making sure that you have proper risk allocated and you're two to three times per your trade on your risk amount. And then also obviously, if you get a good roi, which is arguable because for stocks, you're not going to get this. For options, you are going to get that. And I'm not going to really dive into that too much. So for people that see this and counter argue, oh, well, he put 108,000. Listen, if you want to, if you want to be good at this and you really want to take this serious, stop, you know, looking at stuff and right off the bat looking at it for a negative point, look at the key metrics. And once again, everything that I want you guys to focus on is trade risk. What did this individual risk on a trade? If someone posts that they made 100 grand tomorrow, great. But what did they risk to make 100 grand? Now if I flip this and let's say my trade risk on this was, I don't know, $70,000, right? I risk 70k to make 56k. Great, I made 56k. But think about the long run. If I keep having trades where I'm risking 70,000, what do you think will happen in the long run? My count's not going to look like that. Two, three bad trades will wipe my account out, which is why it's very important to pay attention to that. Right? So done with the rent. Right. Sorry, I got a little carried away. So anyways, took 14 contracts. We're about 58,000, 4,175. Right. Average price 934. So I start taking the position around here, I start seeing the bit hold, we start making a move up. And then you guys can see right after that I had 10 more and 935. Now look at this. On the next 10, look at the contract size. They went to 4830 on this candle right here, 48, 30 is what I paid, I paid about 7 points more most of the time. I do want to bring this up most of the time what I would have done is I would have probably sold or scaled out, would have made almost about $10,000 on the trade and I'm done now. The reason I added more, maybe I was biased, maybe not. And once again, trying to walk you through my mindset, right, Maybe I was biased, maybe I wasn't.

I, because Amazon was on, had earnings last week because it was a catalyst play, it gave me more confidence that we might see a movement on the open. And if we do see movement on the open, up or down, I'm going to try to hammer that in with more size. So I already had that mentality of adding and sizing unless I saw some hesitation in terms of price action that gave me confidence once again added more. Now I'm in about 100k, have 24 contracts and on the first one I try to get filled 15, only got filled 14. That's why it's like a weird number. We go down right at 9:39 is where I start taking my entry. Now also side note, right when we go into this action at 9:36, I also was kind of like, if we see another red candle, by the way, we see another push down below 3180, I'm going to go cash. So once again I want to reinforce on that when I saw this action because obviously hindsight, 20 20, us seeing all of this, right? But when I saw us right here, I got scared a little bit. I don't want to say scared because that's not the proper way to look at trades, but I got, I kind of got, I kind of looked at the trade where, okay, you know, Obviously I'm targeting 3200 in terms of my price, but if we can't continue the action here, we might either get chopped or we might get a big reversal here. So I was ready at 936 to exit out of my position. So I also want to bring that up because people don't really see the in between of the trades because like this isn't showing me continuation. This is showing me a little bit of, you know, rejection around 3,190, 3,180s holding. So I'm kind of, you know, on the fence. We go into the next candle, we push right through 3190, which gives me confidence. We go to the next candle. This is the wild candle right at 6. At 938 we get some wild action, we move all the way to 3213. Key level, I have 3210. I want to talk about. Break the 3200. And we have just a crazy, you know, wick action at 938, right? We go to 938 and I'm kind of also hesitating on trying to sell. And by the way, I did try to sell here. The reason I didn't sell, I try to get filled at a super high price. I forgot what the contracts were even going for. I sold for 67 on the next one. I think my, my sell point was at 70. I was trying to sell my contracts for 70. Didn't get filled here. And then next, next candle, we continue the move. Now 939 is where I took 10 off at 6790 when I saw a little continuation. Just because this candle here a kind of scared me away. And then second besides, it's scaring me away. I was just kind of in the mindset of hey, you know, take some size off. You're up good on this position. And I keep that habit and you guys are going to see me talk about it. Scale out, scale out, scale out, scale out. So I scale out on this trade. I scale out 10, make 26,000 on that scale out at 939. We keep going, right? As we keep going, I start going into 940 and 943, 940. We see some hesitation again. I scale more out now I'm like, okay, we're hitting 3200 20s. Are we going to stall out at 3220s? Are we going to see some flat price action? What are we going to see at 32 20s? Boom. Stall out a little bit here as I stall out, take off 10 at 6634 and then I let the other trade ride with my other remaining.

Position, which was four contracts. And the four contracts I got at 943 at 73 plus and which was right here. Another stale out, right? We see the, we see the pop. I like to sell into the pops. But I was looking for a tighter continuation with this action. Continuation didn't happen. I was like, listen, I'm done with this trade. I'm out. So by this point around 9:43, about, you know, a 10 minute trade, I'm out. Netted 56K. Once again. You guys can see running piano, massive movements on this. The premium just went crazy. Opening drive play is the play that I had on this. Looked for that opening push up with a little Bit hold here, which is what I played this with and saw a nice little continuation move on the upside. Now, typically for the. For month of January, which I will do a recap on, I haven't really gotten the chance to. I've kept my trades, you know, consistent to one or two trades. A lot of times I would have one good trade, I'd be done. I said, also, if I have one big trade and I follow it with one bad trade, I need to be done too. Limiting my trades to, you know, less than four trades this, this year. And obviously you have been doing very, very well. So going to my second trade, which wasn't the best trade, I tried to play the downside. Now, once again, very stupid trade trade idea did not make sense. When I go back to. And this is why recapping and reviewing your trades and this like it's, it's very important, right? So when I look at this trade, I, I go, what the hell was wrong with me? Right? We'll. We'll get into that. So I, I shorted Amazon. I try to play the downside. Okay, so let's go through, through the metrics. Risked about 50. No, no, hold on. Invested about 50k, used 50k capital in this trade. Lost 9500, lost 20%, was originally risking 5700 based on my stop. Obviously did not follow my stop. That is a mistake. That's a terrible thing. Big red flag to me. Should be a big red flag to you. My R multiple. R multiple is negative 16r, which means I did not follow my stop. My R multiple should never be more than negative 1R. Anything more than negative 1R means I respect my stop loss. And here I did not respect my stop loss, which is obviously a big, big, big red flag. However, let's go in the trade idea, right? Took the first trade 948, second exit 958, 10 minutes trade 50.72 4118 was the trade. So let's go through the chart around 948. So let's look at a bigger picture and see what's happening. So I got in around here, right? Let's. Let me just show you. So, you know, we start seeing the fade at 32:34. We start fading into 32:13, the key level that I have. And then we start breaking this key level. So around 948, we start breaking that level. When I see us breaking that level, I'm like, okay, we're seeing weakness. We're seeing heavy rejection at 3220 we're unable to continue here. I'm going to short this play, and I'm going to catch the downside now. Something you guys got to keep in mind from a mental point, playing the upside and downside is very hard to do, right? For some people. Maybe not for some people, it is, but for me, sometimes it does become hard. And overall, it's just a massive shift that you need to, you know, be able to kind of get over. Right? So I showed here, and, you know, next candle, you guys can see pushes right down below 3,205. We get a nice heavy move. And also, if you look at my running p. L. I was up at949. I was about. Up about 3, 500 bucks, right? Based on what I risked and everything. Not what I was looking for, but I was up at about 3,400 bucks at one point. We go into the next candle, we start holding the 3205s. 3200. We start holding that very well. We go back into 3220. And when we go into 3220, this is where I should have looked to offload some of my position. However, this is where I was like, let me add more. I didn't. Thank God. Right? Thank God. I did not add more, but I was very close to doing it. But I said, let me wait for the next candle. If we get a rejection here, I will add more. However, we start seeing a hold. We start trying to break again, and we're not breaking now, mentally, I start going, well, you know, the candle closed. It was a rejection candle, not a continuation candle. 3,220s are looking a little bit scary now. Rule of thumb, whenever you're in a trade and you start doing things like that, get out. Just get out. Like, if I got out at 953. Right, right. 953. I would have lost 2200 bucks. Just think about that. Like, when I was questioning, I would have lost 2200 bucks instead of 10,000. I lost five times more if I followed this plan, and I wouldn't even have lost my original risk amount. Like, just going back to this, I'm like, yo. Like, I'm like, I'm stupid. Like, legit stupid. Like, right, we keep going, boom, next candle. Okay, sell now. Right? Sell now. It now my mind obviously starts elevating the risk. I start saying, well, the high of the day is around 32 30s. We're going into that. We're going to see a rejection. Why sell now? I would Take a new short position. Every, every everything in the book. Right now we're at 954. 954 down 4200. I start hitting my risk amount at this point. We go to the next candle. Boom. Keep going. 956. And before we even go to 957, I'm like, okay, we're going to see a rejection. I'm going to look too short because I'm already biased because I have a position. And once again, at this point, should have cut out. And even if you look at 56, 56, 956, I hit my actual loss amount, right? And then what happens? Boom. Break the hive. The day we break the hive, the day I'm still in, I can wait till 9. 58. We go to 958. We continue. And I'm like, look, now I'm on tilt. Like, like, guys, look. Green day. I know, terrible trade. And. And these are trades we gotta like. Like, personally, I gotta emphasize on same thing for you guys. When you guys have these bad trades, go and be honest with yourself, right? Like, yo, bad trades exit here around 958. You guys can see what happens to the action afterwards. Walk out, stupid trade, right? If this was my opening trade I did going, if I went in with proper size, let's say 100k, this would have been a 20k loss, right? Thank God I sized down on my second trade in terms of size.

It. It kind of, I guess, I don't know if you want to say saved me, didn't save me, but I have a rule of thumb for that too. Whenever I have one big trade, and you guys are going to see this consistently, my trading maybe one or two days, I don't have it. But whenever I have a big trade, and obviously a 56, 000 trade is a big trade, the second trade will not be followed by the same size. It would be followed by less size always. And if me implementing that rule, even if I was right on this trade and I've had trades where I've been right, and I was like, damn, I wish I added more. If I added the same size, this would have been a 20k loss. Maybe more emotions would have came in. It would have been a 25k loss. Yes, I'm still green for the day, but it's like, you can't think like that. Why, why, why would I even burn 25 grand? Why would I even burn 10 grand? What I was supposed to burn, if I want to call burn, is 5700 I went to 9, 500. I could have prevented all of this by taking a loss of 953 and lost 2200, but I didn't, right? I went on complete tilt, and I kind of threw this day away in a way, right? There was a shorting opportunity in Amazon. Amazon did fade midday, right? And when I did see that, obviously, I got. I got a little annoyed because I was kind of like, oh, you know, I played the first move, right? Maybe I got in a little bit too early. Maybe if I faded or played the short position here or on the second or third top, I would have been able to fade it and catch a nice move. But once again, happy I walked out happy. I closed the day, obviously, still green 56 grand. But at the end of the day, you, you, you, you, you. You really got to go through your trades, guys. You really got to understand the psychological aspect of what you did, what you could have done, right? Just to learn from now, going into tomorrow, will I carry this trade, good or bad? No, I've learned from it. I know what I did. I know I will keep certain rules consistent, such as sizing down after a big trade. Such as if I do have a bad trade, I'm done for the day. Such as when I do have a certain trade, I need to make sure I follow my plans. And this idea here where I messed up needs to be reinforced going into tomorrow. For me, that's like, from a mental point of how I try to kind of gauge things, right? So, yeah, that's. That's my trading day once again, Pretty solid day. Not happy with this. And, yeah, thank you for watching, guys, and I will see you guys on the next video.