I Made $50k Day Trading This ONE Strategy | Full breakdown

So today I made a little over $50,000 day trading spy. And in this video I want to walk you guys through my full game plan. What I saw in the morning, how I prepared for the day, where I got in, where I got out, why I got in, why I got out, what my setups were, what are some mistakes I made. And just kind of give you a full breakdown and walkthrough of my trading day and how I was able to make this amount. With that being said, let's dive right into it. So as you guys can see, there's a total of three trades. I made about 65 grand on the first trade, lost 15,000 on the second one and had a negative 1R. Made 3R on the first trade, about 50,696 gross after commissions, paid a lot of commissions obviously trading Spy and as you guys can see, made about 50,000 day trading spy. And before we dive into each trade, the first thing I want to dive into is my pre market game plan, right? So before I approach the day with any single day I I like to look at my pre market game plan. What did I look at, what was my focus point for the market and things of that nature, right? So looking at my pre market game plan, this was the market, pre market, right. So you know, the day prior to today, yesterday which was Wednesday, we had, we had FOMC come out. The day prior to that we had CPI come out. So market's been, you know, very, it's been moving a lot based on news recently, right? And the news hasn't given much direction, especially yesterday. So we were extremely, extremely confused yesterday looking at pre market. What I saw is we start taking out yesterday's low, we start looking extremely weak. So what I start writing down and when I start jotting down, which is a very important concept I recommend everyone to do is I start writing down my thought process. So I'm like weak pre market. We had FOMC yesterday and we got a pretty mixed reaction. We took out yesterday's low in the pre market. Any weakness on open looking for sell off into 391 to 390 zone. So if we get any weakness in the open I'm looking at 391, 390 zone in terms of the demand zone where I think we might sell off until if there is strength then would like to see the 396, 397 area get tackled. Going into today I was a little bit biased towards the downside which I hate being however it worked out today. But I was kind of biased, making the assumption that we're going to continue selling off. So going into the day a little bit with the idea that we will sell off. So this is the first trade of the day. Let's go through the stats. So I traded about 600 contracts, right? I got in 300 here and I got in 300 contracts here. And here's the option chain. So you guys can see 300 contracts around 144, another 300 around 188. Total of 600 contracts which ran me like I basically paid $100,000 for my position. That was my position cost. I risked $21,000 on this position based off my stop loss on my option contract. So that's another thing I want to point out which gave me a 3R trade. So when you guys see these big numbers, and I talk about this a lot, always look at how much was risked to make this amount. So if I risked hypothetically 50,000 to make 65,000, the number is very attractive. Oh wow. He made 65,000. But I risked way too much. So you want to try to look at the risk factor, right? So in this trade, risked 21,000, made about 65%, 65 grand on overall taking commissions out. Right? So let's go through what I saw. Where was the entry, where was the exit and things like that. So this is how pre market looked, right? This is my TOS chart. You guys can see we had a lot of weakness in pre market as I mentioned. So the moment spy open, we went right into VWAP at the 395 level. Once we went into VWAP at the 395 level, that is exactly where I saw weakness. Right. So we go to the 395 level, right? That's the five minute chart. Let me go on the one minute chart. Right. When we get to this area, we start seeing the VWAP get rejected. I start seeing weakness at 395. 395 was not able to sustain itself. So that gave me some confirmation that we might see a target into 393. Now once I saw the shorting opportunity here, I was targeting 393. I was looking for a quick scalp. So I went in with 300 contracts with the idea that I'm going to short this into the 393 area and exit. Now when we went to the 393 area, I obviously, as you guys can see, did not exit. Once we went there, I slowly started removing or updating my stop loss I was like, you know what? We had a quick sell off into 393. 393.50 is holding. We're seeing some consolidation as we're seeing consolidation. If we start holding above 394, I will start exiting my position. So the interesting thing was my running P and L as I got into my position was massively up. I was up $16,000 at a couple of minutes into the open. So that does play a big role into holding positions and impacting you. However, as I mentioned before, I've been trading for a very long time. It's been a little over nine years now. And I've gotten to a point where I can. There are days it gets to me, but I've gotten to a point where I can cut off my P and l and cut off the noise. Being able to do so. I'm able to just look at the charts. Seeing that I was able to hold through this action right. This action right here. And I'm just kind of putting into my head, we got the first leg down. I don't want to sell a little bit early. Missed a big move down. It has happened plenty of times. What I want to do is I want to start seeing, is this a fake move to the downside. If it is and we start consolidating around 394, I'll. I'll exit, I'll take my loss, I'll break even. I'll go cash if not. And I keep seeing this hold, and it keeps getting stagnant and stagnant. I will add more to my position. So once we start going sideways, sideways around 944, I add another 300 contracts, around $1.88, and I go in another 300. I scale in. Once I scale in, you guys can see a couple of minutes later, the move starts happening. And then around 950, right, I'm up $36,000. Once again, I'm not focusing on my P. L going up 36,000. And the, you know, pullback just massively, massively destroys me. So this pullback right here, I saw my premiums, like, really get slaughtered. I saw my premiums take a big pullback. I saw my premiums adjust. And that kind of did scare me a little bit, right? And going back to this trade, one thing I wish I did, I wish I, you know, I didn't scale out properly, right? So if I was to go back and I was to say, hey, what is something I wish I did, I wish I could say, should have scaled out Right. At a better point I should have scaled something out here because trading same day expiration options, there should have been some profit taken here, to be honest. Right. Should have been something 20%, 30%. With that size same day expiration, this trade obviously worked out in my favor. But I know if I play trades like this over a long course of trades, it could end up really bad. Right. However, this trade, that's one thing that I do wish I did better. I wish I should have taken some size off here because this pullback really, you know, took off way too much profits. And I didn't really expect the pullback to happen as extremely as bad as it did. Now as that happens, we start coming back into 394. I'm still watching and I'm like, you know what? We're coming into 394. I'm looking for the sell off. I'm looking for a move down. And also if you guys have been following me, I mentioned the 10am move. I a lot of times around 10am we start seeing some influx of move. So I was also holding closer to that. Right. So as we start making the final leg down or next leg down, at that moment I start scaling out 300, scaling out 100, scaling out 200 before 10am So I start started heavily scaling out in this zone. The reason I started scaling out, few reasons. One, I don't like to hold positions into that 10am zone. I don't want to get caught up in the morning reversal. I don't want to get caught up in, you know, trend directional changes. Second, the second reason I started selling here is I'm up 60% on a, on same day expiration options. I'm not looking for 200%, 400%. That's not realistic. I'm going to, I'm not, not that it's not realistic, it's just something I don't want to focus on. I'd rather focus on 60%, 20%, even 10% some days and take that and walk away with that. Then try to hit big home runs. I took the 65% scaled out and as you guys can see, even when I scaled out I started scaling out around 291. Right. My first scale I was 266, 272, 291 option contracts. Right. We have the option chart right here on Tradezillo. The option chart went to four bucks at one point. So essentially I, there was a whole dollar move. So if, if I, and I'm not saying this, I'm just kind of sharing the mind process of how this works. If I held for another five minutes, could have made another 60 grand. And I share that with you because we all go through that. You guys probably go through your old trades and you're like, oh, if I held this for a little bit more, I could have made so much more money. And I tell people like, hey, the goal is to make a piece of the trade, right? Obviously, I'm really happy with my entry. I'm really happy with my scale out. Maybe I could have maximized the trade. But no, to me, this is a great trade. I took a heavy piece, I was able to scale in and I was able to walk away with a good piece of the trade. That's all. I don't care how much more I could have made. I don't care what happened with the trade afterwards. I needed to let that go and I need to walk away. Right. Looking at the trade overall, you guys can see we did make. We made a new low of 387. I was assuming the 390 was going to be the area we really bounced off. But we did go to 387. Obviously harder to get into 387. Right. But that was my first trade. Really happy with the outcome of this trade. Now my second trade, this is where things got a little bit messy, right? So my second trade, lost about 26%, went in with 500 contracts, had a stop loss around 14K. So lost about what I, you know, anticipated. I entered around 10:30am at the 390 puts. So we go to 10am right? When you start going into 10 a 10:30amSorry, this is where I entered, guys. Just to kind of give you guys perspective, I entered right here. I entered right here. And my setup on this was I thought we're going to see a continuation sell off. I was like, okay, we're seeing a continuation sell off. So I think we might go lower and lower and lower. So I'm going to look for the. That sell off at 390. Right. I think we're going to push into 390, go into 398. 389. I'm sorry. However, right. A few things. 390 is my huge demand zone. I should not have a trade in this demand zone. I should not go into this demand zone and start trading unless we start going away from the demand zone and I have a better risk to reward trade. So that was one mistake, Right. Second mistake was my entry I think was terrible. My entry was a little bit too early. I should have maybe waited for us to take the low of the day out and seen how we responded to that. Right. Typically a lot of times when we take the low of the day out, I like for the pullback to see how the pullback is. Maybe the pullback is where the real trade is. I don't like to trade the low of the days, but I was trying to catch that move before we made the low of the day and I was trying to scalp 500 contracts right here. Got in, I got out at eight minutes later at 88 cents around 10:39. So I basically exited right here. Now another thing I want to talk about. If I held this trade, right, we go to the option contracts. Look at this, right? And look, I got in here $1.18, I lost money. It went down all the way to 80 cents, went back to $1.84. So yes, if I held it, I would have made money. That's not the point I'm trying to make here. The point I'm trying to make here, and I want to share this with you guys, especially a lot of the upcoming traders is you can't look at trading from that perspective. Right. Because yes, you know, hindsight 20 20, I can look at this trade and say, oh, it would have been such a great trade but I need to let go of the idea of what happened here. I took the trade, it hit my stop, I took my maximum loss. I need to move on. I can't say, well, I should have never sold this trade. What if this trade kept going to zero? If it kept going to zero, I, I would have lost my full 59k because I'm trading same day expiration options, right? So you can't look at those factors and say, oh, I wish I held, I would have made money or I wouldn't been read, I would have made so much more. Whatever the case is, you need to let go. Understand when you're wrong. I was wrong here. Entered early, entered into my demand zone. I also got a little bit too comfortable with my last trade where I think I, you know, did, did fairly well for myself and I was like, okay, let me keep going. There's going to be another sell off. I'm going to capture another sell off. I'm going to go in and obviously didn't happen. Right. So just want to recap this day really quick. Overall, great day. A lot of times I mentioned this before when I have my second trades and this is something I really learned from Journaling. A lot of times when I have my second trade, my second trades usually do bad. And the reason is a lot of confidence and excitement come in from the first trade into the second. And that bleeds over for me some days, right? Not every time, most of the time. And I've also always said, like, try to size down the fact that I kept a similar contract size after having a big opening trade. I mean, come on, that was kind of my fault. So this trade I think should have been avoided, obviously. Hindsight 20 20, I chased in this trade, trying to make a new low of the day and so on. One thing I do like doing, just kind of getting off topic and talking about Tradezilla. You know, when I do recap my trades, guys, I'll go to, I'll replay these trades. So, you know, when we look at charts, it's a lot different. So one thing I like to do here is when I replay my trades, I can see where my entries were, where my exits were, at what price point, at what level. And then when I played second by second data, I can actually start seeing how the candle formulated. I can see how, you know, price action happened, how price action basically formulated where I got in, where I got in. And I just started getting a good idea of how, you know, the action kind of formulated. So when I start watching this, I'm like, okay, I'm watching. I start seeing a rejection around 395. At one point. At one. At what point did I take this exit? At what point did I start considering, you know, putting on a position? At what point was I comfortable? So when you start looking at this, see the arrow pops up. It's showing me like, okay, this is when I got in. This is the moment I got in into Spy. So I started seeing how the candle formation was there. And that's something that's like, helped me a lot. So if you guys are on Tradezilla, just, you know, check out the replay feature. I think practicing with that, checking out your past days, past trades is extremely helpful. And yes, and just last thing I want to leave you guys with as guys, when you see these big days, right? When you see a 60k day, a 50k day, whatever, I always say that's not the things I want you guys to focus on. What I really, really want you guys to focus on is I want you guys to focus on my R multiple. I want you guys to focus on that right this. If I risk 3,000, I would have made nine. If I risk 300, I would have made 900. Yes, 65,000 looks cool. And that's why I always say I mention it. But. But I don't want you guys to get thrown off by that. Don't rush the process on becoming a good trader. Don't rush the process and just trying to get to the end goal. Enjoy the process, enjoy the journey and take it from there. With that being said, thank you so much for watching and I will see you guys on the next video.