I Made $72k Trading with this Strategy | Full Breakdown

Today I day traded SPY and I made a little over $72,000 playing the downside. And in this video, I want to walk you guys through my game plan for the day. What I was watching pre market, what my approach to the day was, what I traded, where I got in, where I got out, and just kind of give you guys the full insight of my trading day. So with that being said, let's go into the day. So I had three trades. Old trades were on Spy, I played SPY options, I played puts. So I basically profit on the downside. And all three trades netted me about $72,000 on the day. Now before we go into that, let's just go into each individual trade, right? Just to get a good idea of how the trades were. So looking at all three trades, first trade I risked about 18,000, made 60,000. Second trade I risked about 7,500, made 17,000. Third trade I risked 8,400 and I lost on that trade. And in terms of r multiple, had a 3r and 1.2.32r on the second one and the third one I lost money. Here are the three setups. Here's how much was invested in each trade. Just to kind of show you guys the full nine yards, right? How long I held the trade, entry points, exit points. So let's dive off, dive into the first trade. Now before we go into the first trade, what I want to break down is I want to break down my pre market game plan, right? So the pre market game plan in my opinion is the most important thing, right? The pre market game plan will kind of give you an idea of what I'm seeing or you know, same thing for you guys, what you guys are seeing when you're taking on trades. So looking at the pre market game plan, we had a weak pre market. I was watching for an opening sell off. We got weak numbers on the pre market. I was watching SPY opening sell off on watch if levels hold. I was watching for a bounce. 366 was my main level on watch for downside. So with that being said, let's just take a look at SPY real quick. So here's the SPY five minute chart. And when you guys look at the five minute chart and we just kind of look at the pre market data, right? And we just kind of understand what has happened in the pre market just to identify like the action and whatnot, you will see that during pre market action, the market kind of sold off, right? Not kind of, it did sell off. You guys can see this is pre Market, we had a sell off around the open, a little push down right before the open, a fade towards the upside, closer to the open and and then right away is where we start going to our opening level, right? This is where our opening level is. So a lot of times when I trade and I'm looking strictly at Spy, I take the pre market off. I kind of gauge what the pre market is telling me and then I kind of assess my game plan from there. So these are all my levels. If you guys just want to take a look at the levels overall, you guys can see range bound for the past few days, right? Obviously we had midday movements, but today we had a big gap down. Yesterday, I mean the day prior to yesterday we had a big gap, not a big gap up. We had a gap up, rejection on the gap up and today a big gap down. So typically right before the market opens, I already kind of have an idea that we're gapping down. We're going to open on a gap down. Now my job as a trader is not to predict what will happen. My job as a trader is to create reaction off the price action. So when I look at this right away we open around the 360. 6 70, 366 60, we open right there. So the first minute or two is where I gauge where I will take the trade. If we'll hold this area and if we did hold this area and we started going on a movement, I would look for the 36750, 367.60 break for a maybe possible play on the upside. If not, I was going to play a reject. So my first trade comes from here. So let's go into my first trade, right? So this is my first trade. So my first trade happened on the downside. By the way, I'm using Tradezella here to track all my trades. You upload or connect your broker account, everything syncs in with this. So you guys can check that out@tradezilla.com but anyways, going into this, this was the first trade. The first trade was taken. I got in 500 contracts at 932 at the 365 puts. So at 932 right here I got in 500 contracts. Now the reason I got in here is because ultimately what I played here was the opening range breakout with the opening drive play. Basically this is the level that we held right on the open. I don't know why my thinkorswim is going crazy right now. This is ultimately the level that we held Right on the Open at 931, around 366,50ish, right when we broke that level. Very elementary play here, by the way. It's not something insanely massive. Is where I was like, you know what? I'm comfortable in the day. I'm comfortable in the pre market weakness. I'm comfortable in the opening weakness. I'm looking for a play into 366. And if we can break 366, I think we can have a nice sell off day. So this is essentially where I got in. I got in 500 contracts right here, which equated to about $163,000 position. Right. A lot for options. I understand, but that's why I want to. I kind of want to put you guys away from these numbers. I don't want to. I don't want you guys to focus a lot on these numbers. Right? Because these tr. These numbers are what's going to mess you up. You'll be, oh, well, he put $163,000 to make 60,000. I don't have 106. Whatever. Like that's not what I'm trying to get at here. What I'm trying to get out here. Just think about it. If you guys take similar trades, not the same as me, but if you can capitalize this trade and let's say instead of 163,000, you risked. Right. See, my risk here is 18,000. So it was a 3.3 R trade. You risked $1,000. If you risked $1,000, you would have maybe made 3.3K. If you risked $100, you would have made $330. If you risked 10,000, you would have made 33,000. Right? So the numbers fluctuate. The position sizing is obviously going to fluctuate in trading. And that's not what you guys should take away from any breakdowns that I post or anyone posts. Essentially it should be, what's the setup? Like I mentioned in my last videos, what was the R multiple? What was the percentage? Okay, great. Your job should be to try to replicate that the best you can for your trading. Right? So going into this trade, this is where I get in. Now what was the setup? I had an opening drive. Now, opening drive is a setup that a lot of people get confused with. Some people, you know, you look at the setup and they go, well, this setup only works. Is a setup on the upside. No, for me, an opening drive is right on the open. If I see weakness or strength, either on the up or downside, I will Me personally, I will categorize it as an opening drive play, right? It can be in the up or downside, and that's how I have it categorized. So once that happened, the. This was the label of the trade. Opening drive play, you guys can see, entered 500 contracts. My first exit on this setup on the opening drive play was around right here, which is at 942. I took 200. 200 contracts off at 942. I don't know. My thinkorswim is doing this. Let me just refresh this real quick.

All right, let's go here. Let's take a look at this.

So when we look at this, 942 is where I took about 200 off. And this is 942 right here. Now, just to explain to you guys, my thought process of holding through this whole trade and holding through this, you know, area is once we got. Once we broke out on the first leg down, I was like, I. I kind of contemplated a little bit, right? And I contemplated where I was like, hey, do I go and do I sell something? Right? Because you. I get in a 932, 933, I up 7,500. I'm up 19,000 in about three, four minutes. And mentally, it is something where I'm like, hey, I could sell right now and make 19 to $20,000 three minutes in, essentially, or I can write out my trade the way I want to, the way I think it's going to ride out. So essentially, when we got to this level here, 934, here's where I did think maybe we might get a bounce, right? And I'm just walking through my mindset. I did think maybe we might get a bounce. Maybe this bounce is off here, and we get a quick reversal. And there was a part of me that was ready and looking to set up an order to sell half of my position. So at this point, I was looking to sell half of my position right here. Now, in 20, 30 seconds, in the next candle, I was like, let me wait for the next candle. If I see the next candle hold, I will maybe take half off, if not more than half off the next candle or the next minute push down a 935, followed by another push down, followed by a consolidation, and then another continuation. Now, when the continuation happened, all I told myself is I'm looking to sell about half of my position on this continuation, but I need to find a good level or a consolidated level. So when we got to 942, that's where I was like, you know, maybe we extended too much. I think it is time for me to lock in profits. So that's where I took my first 200 off at 419. Now if I waited another four minutes, I could have maybe sold my contracts for 50 cents more. That would have been maybe another 10, 20 grand in profits. But hey, me as a trader, my job is to make sure I build cash flow, make sure I lock in profits. And that's essentially what I did right here. I made sure I locked in profits and I made sure I had some good cash flow, right? So I did that. I took the trade right here. And then right after taking this trade at 419, that gave me confidence within the trade itself and I was able to write it out more. As I was writing it out more, 946 is where I took my next trade. That's where my next kind of trade kicked in in terms of confidence level, where I was like, okay, I'm going to exit at 946. Now let's go into 946. Let's take a look at where 946 was. This right here is 946. Now, the reason I exited here, just to explain to you guys, so number one, my exits, how are, how are my exits coming about? Right? Existing entries, very important things. So my entry here, everyone should be good by now. My entry came from an opening drive. On the downside, I had the level. We already gapped down. We already had weakness in the market. I made an anticipation we're going to sell off. If I do see a quick push on the downside, I will add or take the position. I took the position. The confirmation came after breaking my key level. And we keep going down. The confirmation or the directional play is there. I exit my first half or half, almost half of my position here, just to lock some profit in and then I take my last position, exit here. Now, ultimately, if I did wait, I could have made more. Let's, let's just put that out there. Yes, if I waited, I could have made more. But, but you know, I like to focus a lot on.

I like to focus a lot on the idea of proper way of trading. And the proper way of trading here is essentially if you guys are up in positions and the trade really goes in your favor, take the profit, take something off. And I do that. And if you guys look at my recaps and go back to my other trades over and over again, you guys will see, I will take profits over and over. Again, right, Same thing here. I will take profits when I see consolidation, when I see holes, especially when, when I'm in kind of the quick in and out type of trading way, that is giving me the confidence to take the profit and run with it. Because I won't try to get in here and exit there and maximize this day, which on that trade could have been like 80, 90 grand, maybe 100 grand. I don't know. I'm not trying to do that. I'm just trying to maximize my position and capitalize on that. So that was the first trade. Now after the first trade, like I said, the mental aspect of the first trade always matters. So after exiting my first trade at 946, at the 365 puts, I go and I adjust my Next puts to 362. Now I got in at 954. This is where I got in about 954, right? Now the reason I got in here, let's talk about that. This was a continuation sell off. Let's look at that. We already got the first leg down. We're seeing consolidation. I'm like, okay, we're seeing consolidation. I think we still have weakness. Let me go and let me take another position. If we do break this level and go into 364 above and close above that, I will exit my trade. If not, I think we got weakness to make another move into 361 20s. So my trade there. Let's go go into that trade, right? So this trade, right.

Made about 17,002.32 R continuation sell off, put about 96 grand, had about 300 contracts, right? Their size here and good setup, good R Multiple, about a 20 trade short trade in and out, right? So in a 954 out at 1001 and then out at 1004. So let's go into 1001 and this is 1001. This is where my first exit was. And then 1004. Now let's go over the exits and let's go over the full trade, right? So continuation sell off. We already got the first leg down, right? And if you guys went over my old recaps, you will see that I have, you know, similar things adjusted. So first leg down, consolidation, looking for the next continuation. That's my game plan here. Got in at a good entry point with a tight stop, right? Once we start breaking the low of the day, which we did here, that's where I secure some profits. So for me, whenever we break that low of the day and especially If I got in at a good entry point, I will take profits at that low of the day. I'm not looking to enter this low of the day. I know a lot of traders enter this and play this quick and that's fine. I like to be in profit here and exit here and reduce my risk as a day trader. That's what I personally like to do. And you know, it has worked out for me. So that was my first exit. Locking some in, making sure I locked in some profits. And then once we start seeing a little hold, we start seeing some green, we start seeing some consolidation. I'm like, you know what, I'm done. Let me get out. Let me call it a day. I'm out, I'm out of this trade. So that's where I got out of my continuation sell off. 2.3, our trade. Right now this is what I want you guys to keep in mind, right? 1004 was my exit. And now after having 1004 as my exit, let's go into my third trade. Now my third trade did not work out in my favor. This is where I also played the continuation sell off. My entry here was 10:14. So 10 minutes after my first trade, right? So I got in here. So this is. I made a few mistakes which I want to tag as well. So my entry was right here and at 10:14, my last exit was right here, right? So I tried to play the same setup, the continuation sell off that I played here to maximize this play into this play, which happens a lot as traders. We will carry over our last trade and think it'll keep happening and it'll keep happening until it blows up in our face, right? So I took the same trade. Now a few problems I. A few mistakes I made here, right? So the first mistake I made here, let's go on that I got in at. I went in 300 contracts, 328, 360 puts went in heavy, right? 98k position worked out very interestingly in a good way because I got filled at a good price. I got filled around 328. I put a stop at 3. So I was risking $8,400 potential to make another 20 or 2 hour trade is what I was anticipating on this setup. Now what happened here is I got in at 1014, exit at 1021, so. So 1014, essentially when I look at my entry, I kind of went in on the low of the day and I told you guys just right here, I don't like to play these. So I played it Right here. I made a mistake. Low of the day, no play one of these areas. Play a better zone. Play a better consolidation zone. So I took the trade right there. Once we saw consolidation, I should have gotten out immediately. Once I get into a trade, especially if it's a low of the day or a high of the day, and I see consolidation, a lot of times, I like to get out because they, to me, are traps. So I did not exit when I should have. And then 1021, right is when I go to 1021. Right here is where I got out. I'm like, okay, we're starting to see some upside movement. Let me get out. Let me stay cash. So that was my. My last trade of the day. Continuation sell off. Now, a few things about this day. Now, I did want to. I wanted to play, like the double, you know, low here with the move on the upside, I was like, we got a huge extended sell off. After we got a huge extended sell off, we might maybe bounce. And I started looking for the bounce play. Now, I did not take the bounce play ultimately because my last trade was a losing trade. And then I was also like, hey, I'm up about 70 grand for the day. I could potentially be in a position to risk this money on this trade and on the day and essentially make more, which could have been a possibility or could have worked out. I let that go because once again, now rules play, right? What are my rules? Hey, I don't trade more than three, four. I don't take on more than three, four trades a day. That's number one. Number two, if I have a good opening day, call it a day, walk away. Don't try to maximize the day. Don't try to take more trades. Don't force trades. No be done for the day. And that's essentially what I did right here. Now, two things I want to talk about here. Now, when you guys are taking trades, by the way.

Just make sure your trades have setups. So for me, I explained 1 setup, 2 setup, and 3 setup. So I explained two different setups in this video. Now, this setup here hypothetically worked. This setup here hypothetically worked. This setup wasn't really a good setup, if I'm being honest. But let's just say I did play it as a setup, right? If I look at the pros and cons, one time when I took the setup, I made 20k. The other time I took the setup, I lost about 8k. So ultimately, even if I took the same setup twice, I'm still up $12,000 on the setup, and I'll take that 50% win rate or win percentage. And being up 12 grand, you know, about 2.5 R compared to your winners and losers, that's phenomenal. And that's essentially what, you know, I want you guys to start doing. I want you guys to start looking at your trade setups. I want you to look at what you traded, what you didn't trade, and try to narrow into a few setups that ideally work for you and just hammer them in as much you possibly can. With that being said, thank you for watching, guys. I will see you guys on the next video. I hope you guys found value in this video.